When a Government Increases an Effective Price Ceiling for a Product

question 87

Multiple Choice

When a government increases an effective price ceiling for a product

• A) the shortage in the market will be reduced.
• B) the shortage in the market will be increased.
• C) the surplus in the market will be reduced.
• D) the surplus in the market will increase.

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Definitions:

Self-Governing

Having the authority or autonomy to govern oneself or manage one's own affairs without external control.

Professional Bodies

Organizations representing the interests of professionals in a specific industry, responsible for setting standards, providing training, and enforcing ethics.

Role

Describes the function or part played by a person or thing in a particular situation or system, such as in an organization or process.

Donoghue v. Stevenson

A foundational case in Scots and English tort law which established the principle that manufacturers owe a duty of care to the ultimate consumers of their products.