If the Government Fixes the Price of Good X Above

question 74

Multiple Choice

If the government fixes the price of good X above its free- market equilibrium level, we should expect

• A) a shortage of good X to occur.
• B) a new free- market equilibrium price to be established.
• C) a surplus of good X to occur.
• D) an excess demand for good X.
• E) a black market to arise for good X.

---

Definitions:

Sleep Clinic

A medical facility specializing in the diagnosis and treatment of sleep disorders.

Color Constancy

The ability of the human visual system to perceive colors of objects as constant under varying illumination conditions.

Shape Constancy

A perceptual phenomenon where the perceived shape of an object remains constant despite changes in the viewing angle or distance.

Proximity

The spatial or psychological closeness or nearness between people or objects, which can influence various aspects of human behavior and perception.