Governments Sometime Create an Excess Supply of a Product by Setting

question 85

True/False

Governments sometime create an excess supply of a product by setting a minimum price that is greater than the equilibrium price, resulting in a permanent excess supply of the product. This is known as a price ceiling.

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Definitions:

Future Possible Activities

Activities or tasks that individuals or groups might undertake in the future, which are currently considered as options or plans.

Cognitive Responses

The mental reactions and thoughts that arise in response to external stimuli, forming the basis of attitudes, beliefs, and actions.

Nonspecific-Action Tendencies

General predispositions to act in a certain way without a precise or direct motive.

Broaden-And-Build Tendencies

A theory suggesting that positive emotions expand an individual's attention and mindset, leading to increased creativity, problem-solving abilities, and personal growth.