Which of the Following Statements Best Differentiates Price Ceilings and Price

question 94

Multiple Choice

Which of the following statements best differentiates price ceilings and price floors?

• A)Price ceilings represent minimum prices,while price floors represent maximum prices.
• B)Binding price ceilings are always set below the equilibrium price,whereas binding price floors are always set above the equilibrium price.
• C)Price ceilings are always effective,whereas price floors are rarely effective.
• D)Price floors cause shortages to appear,whereas price ceilings have the opposite effect.
• E)Price ceilings and price floors have the same effects.

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Definitions:

Groupthink

A phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Implicit Attitudes

Unconscious beliefs or feelings towards people, objects, or concepts that influence one's responses independently of conscious control.

Just-World Phenomenon

The tendency for people to believe the world is just and that people therefore get what they deserve and deserve what they get.

Mirror-Image Perceptions

Mutual views often held by conflicting people, as when each side sees itself as ethical and peaceful and views the other side as evil and aggressive.