When a Price Ceiling Is in Effect

question 8

Multiple Choice

When a price ceiling is in effect:

• A) suppliers get too strong a signal from demanders about their needs.
• B) demanders have no incentive to signal their needs to suppliers.
• C) all of demanders' needs are met at the lower price, so there is no need to signal anything to suppliers.
• D) demanders cannot signal their needs to suppliers.

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Definitions:

Retrograde Amnesia

A loss of memory for events that occurred before a particular point in time, often due to trauma or disease.

Proactive Interference

The phenomenon by which previously learned information interferes with the recall of new information.

Source-monitoring Error

A type of memory error where a person misidentifies the source of a memory, such as confusing whether an event was experienced or imagined.

Retrieval Cue

A stimulus that allows or aids the recall of information stored in memory.