When an Effective Price Ceiling Is Removed, We Would Expect

question 49

Multiple Choice

When an effective price ceiling is removed, we would expect the price of the good to:

• A) increase and the quantity demanded to decrease.
• B) increase and the quantity demanded to increase.
• C) decrease and the quantity demanded to decrease.
• D) decrease and the quantity demanded to increase.

---

Definitions:

Immigration

The movement of people into a country in which they are not natives or where they do not possess citizenship in order to settle or reside there.

Domestic Output

The collective worth of every product and service generated inside a nation's boundaries over a specific duration.

Total Wage Bill

The cumulative amount of money a firm pays to its employees in wages over a specific period.