Price Ceilings and Price Floors That Are Binding

question 189

Multiple Choice

Price ceilings and price floors that are binding

• A)are desirable because they make markets more efficient and more fair.
• B)cause surpluses and shortages to persist because price cannot adjust to the market equilibrium price.
• C)can have the effect of restoring a market to equilibrium.
• D)are imposed because they can make the poor in the economy better off without causing adverse effects.

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Definitions:

Trustworthy Evidence

Information or data considered reliable and credible in a legal context.

Search Warrant

A legal document authorizing a police officer or other official to enter and search premises.

Reasonable Person

A hypothetical individual in law whose behavior serves as a standard of care to determine if actions of others are legally acceptable.

Miranda Rights

A legal directive ensuring that individuals under arrest are informed of their rights, including the right to remain silent and the right to an attorney.