When an Effective Price Ceiling Causes a Shortage, Some of Thebuyers

question 118

Multiple Choice

When an effective price ceiling causes a shortage, some of thebuyers who value the good the most may not be able to get thegood. Why does this occur?

• A)The highest value users cannot outbid the lower valued users and so the seller cannot distinguish between them.(True
• Answer )Correct
• B)The highest value users are eliminated from the market due to the price ceiling.
• C)The price ceiling causes the price to rise so high that even the highest value users cannot afford the good.
• D)The government purchases most of the goods.

Understand the role of ribosomes and RNA in early evolutionary hypotheses regarding the origin of life.

Comprehend the role of water and other molecules in prebiotic chemistry and metabolic reactions.

Grasp the significance of physical environments and processes on the Earth and outer space in the formation of organic molecules and life.

Understand the process of endosymbiosis and its genetic implications for eukaryotic evolution.

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Definitions:

Franchise

A business model where the brand and business system of a franchisor is licensed to a franchisee in exchange for fees or royalties.

Intellectual Property

Creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names, and images used in commerce.

Trademark

A sign, term, or expression that has been legally recognized or accepted through usage, symbolizing a corporation or a product.

Trade Name

The commercial name under which a business operates and is known to customers, distinct from the company's legal name.