When a Price Ceiling Is Imposed Below the Equilibrium Price

question 17

Multiple Choice

When a price ceiling is imposed below the equilibrium price of a commodity,

• A) quantity supplied will be greater than quantity demanded for the good.
• B) the problem of scarcity will be solved.
• C) a shortage of the good will develop.
• D) a surplus of the good will develop.

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Definitions:

Psychoanalyst

A therapist specializing in psychoanalysis, a method of psychological therapy and theory developed by Freud, which emphasizes the exploration of the unconscious mind.

Biological Impulses

Innate urges or drives that dictate behavior, such as hunger, thirst, and reproduction.

Freud's Theory

A set of psychoanalytic theories developed by Sigmund Freud, centering on unconscious desires, childhood experiences, and sexual and aggressive instincts driving human behavior.

Social Restraints

The limitations or boundaries set by society or culture that dictate acceptable behavior and inhibit certain actions.