The Price Received by Sellers in a Market Will Increase

question 145

Multiple Choice

The price received by sellers in a market will increase if the government

• A)decreases a binding price floor in that market.
• B)increases a binding price ceiling in that market.
• C)increases a tax on the good sold in that market.
• D)imposes a binding price ceiling in that market.

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Definitions:

Risky Portfolio

An investment portfolio that consists of assets with higher levels of risk, with the potential for higher returns.

Geometric Average Return

The average rate of return on an investment, calculated by multiplying n returns together and then taking the nth root.

Quarterly Returns

The investment gains or losses experienced by an asset or portfolio over a three-month period.

Geometric Average Return

A method of calculating the average rate of return that accounts for the compounding of returns over time.