The Quantity Sold in a Market Will Decrease If the Government

question 164

Multiple Choice

The quantity sold in a market will decrease if the government decreases a

• A)binding price floor in that market.
• B)binding price ceiling in that market.
• C)tax on the good sold in that market.
• D)All of the above are correct.

---

Definitions:

Compounded Monthly

An interest calculation method where the interest earned is added to the principal every month, thus earning interest on interest from the preceding month.

Withdraw

To remove funds from an account, or to take back or remove an offer, statement, or participation.

Compounded Annually

Interest calculated on the principal and previously accumulated interest once a year.

Compounded Monthly

Interest on an investment is calculated and added to the principal balance every month.