Suppose Kate Lives in a Community with No Price Controls

question 5

Multiple Choice

Suppose Kate lives in a community with no price controls.What could she expect will happen if her town borders a community where there is a nonbinding price ceiling on most products?

• A) Legal market prices will rise in the community with a binding price ceiling.
• B) Legal market prices will fall in the community with a binding price ceiling.
• C) The price and the quantity sold in the community without a nonbinding price ceiling will be the same as the price and quantity in the community with a nonbinding price ceiling.
• D) There will be more shortages in the community with a binding price ceiling.
• E) The black market in the community with a binding price ceiling will not be strong because consumers will simply purchase the product in the community that has no price ceiling.

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Definitions:

Communism

A political and economic ideology advocating for a classless society in which all property is publicly owned and each person works and is paid according to their abilities and needs.

Gender

Socially constructed roles, behaviors, expressions, and identities of girls, women, boys, men, and gender diverse people.

Emancipatory Subject

Refers to entities or groups endeavoring to free themselves from restricting conditions or regimes and achieve greater autonomy and rights.

Societies Progress

The development and evolution of social, economic, and cultural practices within societies, often aimed at improvement or advancement.