Reference: Ref 8-3 (Figure: Government Price Controls) Refer to the Figure

question 73

Multiple Choice

Reference: Ref 8-3 (Figure: Government Price Controls) Refer to the figure. The government enacts a price control causing a shortage of 15 units of the good. Therefore, the ________ is set at ________.

• A) price floor; $31
• B) price floor; $17
• C) price ceiling; $10
• D) price ceiling; $17

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Definitions:

Secretary

A professional responsible for managing administrative tasks and facilitating smooth operations within an organization.

Trained

Refers to individuals who have received instruction or education in a specific skill or field.

Adverse Selection

A situation in economics where buyers and sellers have different information, leading to transactions where one party may be at a disadvantage, often discussed in insurance markets.

Auto-Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident or theft.