If a Seller Facing Excess Demand Is Unable to Raise

question 148

Multiple Choice

If a seller facing excess demand is unable to raise the price of the good due to a price ceiling, a likely result will be:

• A) an increase in the quantity supplied of the product.
• B) an increase in the price of the product.
• C) a decrease in the quality of the product.
• D) a further decrease in the price of the product.

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Definitions:

Federal Budget

The financial plan for the government's revenues and expenditures over a specified period, usually a fiscal year.

Highway Fatalities

The number of deaths resulting from accidents or collisions on public roads and highways.

Macroeconomics

A branch of economics dealing with the structure, performance, behavior, and decision-making of an economy as a whole, rather than individual markets.

Nation's Economy

The overall economic system of a country, including its production, consumption, and trade of goods and services.