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:

Reinforcement

In operant conditioning, any event that strengthens or increases the likelihood of a behavior occurring again.

Punishment

A consequence applied to an individual or a group for a behavior deemed unacceptable by a given standard, intended to discourage the behavior's recurrence.

Self-efficacy

A belief in one's capabilities to organize and execute the courses of action required to manage prospective situations.

Birth Order

The theory that a person's rank by age among siblings influences their personality and behavior.