If a Good Is Subject to a Binding Price Floor

question 103

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 availability of the good over time?

• A) The availability of the good will fall over time as the supply curve becomes more elastic and the demand curve becomes more inelastic.(The surplus of the good will fall. )
• B) The availability of the good will fall over time as both the supply and demand curves become more elastic.(The surplus of the good will fall. )
• C) The availability of the good will rise over time as both the supply and demand curves become more elastic.(The surplus of the good will rise. )
• D) The availability of the good will fall over time as the demand curve becomes more elastic and the supply curve becomes more inelastic.(The surplus of the good will fall. )
• E) The availability of the good will not change over time.

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Definitions:

Guidelines for Behavior

Broad recommendations or principles designed to direct or influence actions and conduct in relation to behavior.

Coercive Interaction

A form of social interaction where one individual attempts to force or manipulate another into compliance, often through threats or aggression.

Authoritative Parenting

A parenting style characterized by high expectations of maturity, clear guidelines and rules, emotional warmth, and an approach that values both autonomy and disciplined conformity.

Attachment

refers to the emotional bond that forms between individuals, critically shaping interpersonal relationships and emotional development.