Price Ceilings and Price Floors

question 120

Multiple Choice

Price ceilings and price floors:

• A) cause surpluses and shortages in markets respectively.
• B) interfere with the allocation function of prices.
• C) make the rationing function of markets more efficient.
• D) cause demand and supply curves to shift thus having no effect on the rationing function of prices.

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Definitions:

Tracheal Tubes

The system of small tubes in insects and some other arthropods that carry air directly to tissues from openings in the exoskeleton.

Body Surface

Refers to the external part or skin of an organism, serving as a protective barrier and interface with the environment.

Salamanders

A group of amphibians characterized by their lizard-like appearance, moist skin, and ability to regenerate lost body parts.

Crustaceans

A diverse group of aquatic animals that have a hard exoskeleton, including species like crabs, lobsters, crayfish, and shrimp.