If a Price Ceiling Is Set Above the Current Market

question 141

Multiple Choice

If a price ceiling is set above the current market clearing price, then

• A) a surplus must immediately occur.
• B) a shortage must immediately occur.
• C) there will be incentives for black markets to develop.
• D) quantity demanded will remain equal to quantity supplied at the current market clearing price.

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Definitions:

Introspective

The practice of examining one's own thoughts, feelings, and sensations in order to gain insight; a reflective looking into oneself.

Psychological Research

The scientific study of the mind and behavior, employing systematic methods to explore and understand psychological phenomena.

Experimental

Pertaining to a research methodology that involves manipulating one variable to determine if changes in one variable cause changes in another variable, within a controlled environment.

Humanistic Psychology

A psychological perspective emphasizing the study of the whole person and the uniqueness of each individual's experience.