If a Good Is Subject to a Binding Price Floor

question 131

Multiple Choice

If a good is subject to a binding price floor and someone purchases it on the black market,what would he or she expect to happen to the price over time?

• A) The black market price will rise over time as the supply curve becomes more elastic and the demand curve becomes more inelastic.
• B) The black market price will fall over time as both the supply and demand curves become more inelastic.
• C) The black market price will rise over time as the demand curve becomes more elastic and the supply curve becomes more inelastic.
• D) The black market price will fall over time as both the supply and demand curves become more elastic.
• E) The black market price will not change over time.

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Definitions:

Persuasion Process

The method through which attitudes or beliefs are influenced or changed by communication and argumentation.

Implicit Attitude

Implicit attitudes are unconscious beliefs or feelings towards people, objects, or concepts, influencing behavior and perception without conscious awareness.

Modest Correlation

A statistical relationship between two variables that is present but not strong, indicating a limited degree of association.

Concerned Citizen

An individual who shows care or worry about issues affecting their community or society at large.