At a Price Ceiling of $6 Per Sheet of Drywall

question 153

Multiple Choice

At a price ceiling of $6 per sheet of drywall, quantity demanded is 100 and quantity supplied is 75. What will happen in the drywall market if there is an increased demand for drywall in the construction industry?

• A) Equilibrium will be restored.
• B) The shortage of drywall will fall below 25 units.
• C) The shortage of drywall will increase above 25 units.
• D) The surplus of drywall will increase above 25 units.

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Definitions:

Moral Hazard

The risk that one party to a contract can change their behavior to the detriment of another after the contract has been concluded.

Health Care Insurance

Insurance that finances the medical and surgical expenses for the individual covered under the policy.

Associated

Often used to describe things or entities that are connected or linked with each other in some way.

Health Care Market

The aggregate of providers, consumers, and organizations related to the production, distribution, and consumption of health and medical care services.