If a Government-Imposed Price Ceiling Causes the Observed Price in a Market

question 67

Multiple Choice

If a government-imposed price ceiling causes the observed price in a market to be below the equilibrium price,

• A) there will be excess demand.
• B) there will be excess supply.
• C) the curves will shift to make a new equilibrium at the regulated price.
• D) None of the above.

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Definitions:

Cost of Play

Refers to the expenses associated with participating in a game, competition, or any form of entertainment.

Win

To achieve victory in a contest or competition.

Fair

An event or situation characterized by justice, equality, and impartiality, or an adjective describing such qualities.

Expect

To anticipate or regard as likely to happen in the future.