Some Developing Countries Have Used Price Ceilings to Keep Rice

question 7

Multiple Choice

Some developing countries have used price ceilings to keep rice cheap to assist the poor.At the ceiling price:

• A)the quantity demanded will be greater than the quantity supplied and a shortage will result
• B)the quantity demanded will be greater than the quantity supplied and a surplus will result
• C)the quantity demanded will be less than the quantity supplied and a shortage will result
• D)the quantity demanded will be less than the quantity supplied and a surplus will result

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Definitions:

Economically Better Off

A condition where an individual or community experiences an improvement in financial situation, often measured by increases in income, wealth, or standard of living.

Transaction

A Transaction is an exchange or transfer of goods, services, or funds between two or more parties.

Income

Income encompasses the money or assets that an individual or business receives, usually in exchange for providing a good or service or through investing capital.

Note Receivable

A promissory note held by the creditor, evidencing a debtor's obligation to pay back a loan or other credit extended.