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:

P Value

A statistical measure that helps determine the significance of results, indicating the probability of observing the results if the null hypothesis is true.

Null Hypothesis

An initial hypothesis that assumes no association or difference between groups or variables, tested against an alternative hypothesis.

Satisfaction with Police

The public's perception or feelings towards the effectiveness, fairness, and responsiveness of police services.

Effect Size

A quantitative measure of the magnitude of a phenomenon or the strength of the relationship between variables.