If a Binding Price Ceiling Is in Effect and If

question 32

Multiple Choice

If a binding price ceiling is in effect and if the demand for the product increases, one consequence would be

• A) an increase in the amount of excess demand.
• B) a decrease in the amount of excess supply.
• C) a decrease in the amount of excess demand.
• D) no change in the excess supply or demand for the product.
• E) an increase in the amount of excess supply.

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Definitions:

Slave Sales

Transactions involving the buying and selling of individuals as property, a central element of the slave system in historical contexts.

Family Units

Social groups consisting of parents and their children, considered as a basic unit in society for educating children and providing emotional and financial support.

Compromise of 1850

A series of congressional laws intended to settle the issues arising from the expansion of slavery into new territories, aiming to ease tensions between the North and South.

Kansas-Nebraska Act

Legislation passed in 1854 that allowed the territories of Kansas and Nebraska to decide for themselves whether or not to allow slavery within their borders, leading to violent conflict.