In a Competitive Market,a Price Ceiling Set Below the Free-Market

question 55

Multiple Choice

In a competitive market,a price ceiling set below the free-market equilibrium price will result in

• A)a continuation of the free-market equilibrium price and quantity.
• B)the quantity demanded exceeding quantity supplied and thus a shortage in the market.
• C)the quantity supplied exceeding quantity demanded and thus a surplus in the market.
• D)a new free-market equilibrium at a lower price and higher output level.
• E)excess supply.

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Definitions:

Fixed Amount of Time

A specific, unchangeable duration designated for a particular task or activity.

Varying Amounts of Time

Pertains to instances or situations where the duration or period can differ significantly, not fixed or consistent.

Unconditioned Response

A response that occurs naturally in reaction to an unconditioned stimulus, without the need for prior learning.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without any learning needed.