Why Do Price Ceilings Tend to Cause Persistent Imbalances in the Market

question 83

Multiple Choice

Why do price ceilings tend to cause persistent imbalances in the market?

• A)Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
• B)Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus.
• C)Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage.
• D)Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.

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Definitions:

Transfer Electrons

The movement of electrons from one atom or molecule to another, a fundamental process in chemical reactions and electricity conductance.

Dehydrogenation

A form of oxidation in which hydrogen atoms are removed from a molecule.

Hydrogen Atoms

The simplest atoms consisting of only one proton and one electron.

NAD+

Nicotinamide adenine dinucleotide, a coenzyme involved in redox reactions, serving as an electron carrier in metabolic processes.