Why Do Shortages Develop Under a Binding Price Ceiling

question 126

Multiple Choice

Why do shortages develop under a binding price ceiling?

• A) It encourages sellers to produce more of the product.
• B) It encourages buyers to purchase less of the product.
• C) It makes the price so low that the quantity demanded exceeds the quantity supplied in the legal market.
• D) It makes the price so low that the quantity demanded exceeds the quantity supplied on the black market.
• E) It encourages sellers to increase the quality of the products they sell,which in turn increases the quantity demanded.

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Definitions:

Racially Homogenous

Describes a population, group, or area predominantly composed of individuals from a single racial or ethnic background.

Civil Rights Movement

A social and political campaign in the United States during the 1950s and 1960s, aimed at ending racial discrimination and gaining equal rights for African Americans.

Ethnic Chauvinism

An exaggerated or aggressive form of patriotism and pride in one's ethnic group, often accompanied by feelings of superiority over other groups.

Racial Superiority

The belief that a particular race is inherently superior to others, often used to justify discriminatory practices or attitudes.