If a Price Ceiling Is Set at $8 in the Market

question 107

Multiple Choice

If a price ceiling is set at $8 in the market in the graph shown:

• A) some consumers will benefit because they pay a lower price.
• B) producers will lose because they sell at a lower price.
• C) the quantity traded in the market will fall.
• D) All of these are correct.

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Definitions:

Dishonored

A term used to describe a financial instrument, such as a check or promissory note, that has been refused acceptance or payment.

Personal Defense

A liability defense that is not applicable to holders in due course.

Modification

A change or alteration, often to a contract or agreement, altering its terms or conditions.

Dishonored

Referring to a financial instrument, such as a check or promissory note, that is not accepted or paid when presented for payment.