The Price Paid by Buyers in a Market Will Increase

question 160

Multiple Choice

The price paid by buyers in a market will increase if the government
(i) Increases a binding price floor in that market.
(ii) Increases a binding price ceiling in that market.
(iii) Decreases a tax on the good sold in that market.

• A)(ii)only
• B)(iii)only
• C)(i)and (ii)only
• D)(i), (ii),and (iii)

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Definitions:

Elastic Demand

A market condition where the quantity demanded of a good or service significantly changes in response to a change in price.

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in price.

No-Name Brand

Products that are sold without a brand name, often packaged plainly and priced lower than branded counterparts, focusing on basic functionality.

Professional Chefs

Skilled individuals who are trained in the art of food preparation, cooking, and presentation in a professional setting.