If the Intended Aim of the Price Ceiling Set at $6

question 85

Multiple Choice

If the intended aim of the price ceiling set at $6, as shown in the graph, was a net increase in the well-being of consumers, then normative analysis would conclude that the policy was:

• A) effective because the surplus gained by consumers through lower prices is less than the surplus they lost due to fewer transactions taking place.
• B) ineffective because the surplus gained by consumers through lower prices is less than the surplus they lost due to fewer transactions taking place.
• C) effective because the surplus lost by producers through lower prices is less than the surplus gained by consumers through lower prices.
• D) There is no "right" conclusion to be reached (in a normative sense) because different people will have different opinions concerning what constitutes a better outcome.

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Definitions:

New Message

Novel information or communication intended for delivery to an audience or individual.

Mobile Devices

Portable electronic devices such as smartphones and tablets that offer a range of functionalities including communication, computing, and internet access.

Workplace

The physical or virtual location where work is carried out, such as an office, factory, or online platform.

Usage Policies

Guidelines that dictate the acceptable and prohibited use of a service, device, or intellectual property.