If the Equilibrium Price for Some Product Is $1000,a Price

question 66

Multiple Choice

If the equilibrium price for some product is $1000,a price ceiling of $800 will result in

• A)the same general effects as a price ceiling of $1200.
• B)the same general effects as a price floor of $1200.
• C)the same general effects as a price ceiling of $600.
• D)massive surpluses of the good.
• E)no effects because the price ceiling is not binding at that price.

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Definitions:

Monopolize Leadership

The act of dominating leadership roles or positions to the exclusion of others.

Traditional Authority

The norm in tribal and feudal societies, involves rulers inheriting authority through family or clan ties. The right of a family or clan to monopolize leadership is widely believed to be derived from the will of a god.

Higher Principle

An overarching ethical or moral standard that guides decisions and actions, often prioritized over other considerations.

Charismatic Authority

Based on belief in the claims of extraordinary individuals to be inspired by God or some higher principle.