If a Binding Price Ceiling Is Set in the Market

question 50

Multiple Choice

If a binding price ceiling is set in the market shown in the graph:

• A)quantity demanded will exceed quantity supplied.
• B)quantity supplied will exceed quantity demanded.
• C)the demand curve will have to shift.
• D)the supply curve will have to shift.

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Definitions:

M.B.A.s

Master of Business Administration; a graduate degree focusing on business administration and investment management.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Sociology

The study of the development, structure, and functioning of human society, including the analysis of social relationships and institutions.

Time

The continuous, irreversible progress of existence and events in the past, present, and future regarded as a whole.