Because a Price Ceiling Causes

question 40

Multiple Choice

Because a price ceiling causes:

• A) a shortage, some form of rationing must occur.
• B) excess supply, some form of rationing must occur.
• C) a shortage, the outcome will be efficient.
• D) excess supply, the outcome will be inefficient.

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Definitions:

Uniform Density

A measure indicating that mass is evenly distributed throughout a substance or object, so each unit volume has identical mass.

Probability

Probability refers to the measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Poisson Approximation

A statistical technique used to estimate the probability of a given number of events happening in a fixed interval of time or space when these events occur with a known constant mean rate and independently of the time since the last event.

Probability

An indicator representing the probability or odds of a specific event happening, with its value ranging from 0 to 1.