If the Government Sets £1 as the Price Ceiling for a Pound

question 2

Multiple Choice

If the government sets £1 as the price ceiling for a pound of sugar when the equilibrium price is £2.50, _____.

• A) the number for goods used as a substitute for sugar will fall
• B) sugar will have to be exported to other countries to reduce the surplus in the market
• C) sellers may seek to sell sugar illegally at a price lower than the price ceiling
• D) the quantity of sugar demanded will exceed the quantity supplied

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Definitions:

Social Forces

The societal elements, including institutions, norms, and cultural dynamics, that influence individuals' behaviors and interactions within a society.

Constrain our Choices

The limitations placed on decision-making by external factors such as societal norms, economic conditions, or legal restrictions.

Marriage Market

The social space in which individuals search for potential marriage partners, often influenced by factors such as socioeconomic status, cultural norms, and personal preferences.

Financial Assets

Economic resources or investments that have monetary value, such as stocks, bonds, or bank deposits.