When a Price Ceiling Prevents a Higher Market Price from Rationing

question 80

Multiple Choice

When a price ceiling prevents a higher market price from rationing a good,

• A) a surplus of the good will develop.
• B) scarcity of the good will be eliminated.
• C) non-price factors will play a more important role in the rationing process.
• D) the future supply of the good will expand rapidly.

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Definitions:

Commercial Farming

Large-scale production of crops and livestock intended for sale in the market, not purely for personal or local consumption.

Great Plains

A vast, flat area of land covering parts of the U.S. and Canada, known for its grasslands and significant agricultural output.

Exodusters

African Americans who migrated from states along the Mississippi River to Kansas in the late nineteenth century, seeking political and economic freedom.

Kansas Farmers' Alliance

An organized agrarian economic movement among farmers in Kansas in the late 19th century that worked for their mutual benefit and protection.