If a Good Is Subject to a Binding Price Ceiling

question 86

Multiple Choice

If a good is subject to a binding price ceiling and you purchase it on the black market,what do you expect to happen to the price over time?

• A) The black market price will rise over time as the supply curve becomes more elastic and the demand curve becomes more inelastic.
• B) The black market price will fall over time as both the supply and demand curves become more inelastic.
• C) The black market price will rise over time as the demand curve becomes more elastic and the supply curve becomes more inelastic.
• D) The black market price will fall over time as both the supply and demand curves become more elastic.
• E) The black market price will not change over time.

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Definitions:

Final Modifier

A keyword in Java indicating that a variable cannot be reassigned, a method cannot be overridden, or a class cannot be inherited.

Derived Class

In OOP, it is a class that extends another class, inheriting its methods and properties, allowing for polymorphism and code reuse.

Object Class

A template or blueprint from which objects are created in object-oriented programming.

Ancestor Class

A class from which another class inherits, directly or indirectly. It's a part of the hierarchical inheritance in object-oriented programming.