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

question 167

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:

Free States

Refers to U.S. states that had abolished slavery before or by the end of the American Civil War.

Enslaved People's Efforts

The various ways in which people held in slavery resisted their condition and sought freedom, including revolts, escapes, and culture preservation.

Proslavery Propaganda

Messages and materials circulated with the aim to justify, support, or promote the institution of slavery, particularly in the United States before the Civil War.

Contented Slaves

A controversial and debunked theory suggesting that slaves may have been content with their lot, often used to justify slavery practices.