When the Government Sets a Price That Is Above the Equilibrium

question 259

Multiple Choice

When the government sets a price that is above the equilibrium price in a market:

• A)new firms will enter the industry.
• B)there will be a surplus in the market.
• C)there will be a shortage in the market.
• D)quantity demanded in the market will equal quantity supplied.

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Definitions:

Instinctive Behaviors

Instinctive behaviors are actions or responses that are inherent and automatic in animals or humans, not learned from experience.

Zone of Proximal Development

A concept by Vygotsky describing the difference between what a learner can do without help and what they can achieve with guidance and encouragement.

Capability

The quality or state of being capable; having the ability, power, or qualities necessary to do something.

Biological Perspective

An approach in psychology that examines psychological phenomena in terms of biological processes and aspects.