Refer to the Accompanying Figure

question 111

Multiple Choice

Refer to the accompanying figure. If there is a $700 government-imposed price antigouging law imposed on generators, how will the market be affected in the short run?

• A) There will be a shortage of 200 generators.
• B) There will be a shortage of 100 generators.
• C) The government will intervene and order a surplus of 100 generators.
• D) Price gougers will enter the market and provide a surplus of 100 generators.
• E) No changes will occur in the market, since anti-price-gouging laws are now in effect.

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Definitions:

Panic Disorder

A psychiatric disorder characterized by recurrent unexpected panic attacks and fear of future attacks, leading to significant distress or impairment in functioning.

Unpredictable Episodes

Sudden and unforeseen occurrences or events, often related to health conditions, that can significantly impact an individual's well-being or the state of a situation.

Distress

A negative stress reaction to an external stressor, characterized by anxiety, worry, or physical stress symptoms.

Obsessions

Persistent, unwanted thoughts, images, or urges that cause significant anxiety or distress.