Suppose the Equilibrium Price of Bananas Is $5 and a Price

question 87

Multiple Choice

Suppose the equilibrium price of bananas is $5 and a price ceiling of $7 is implemented.This will result in:

• A)a shortage, as the price ceiling is above the equilibrium price
• B)a surplus, as the price ceiling is above the equilibrium price
• C)no change in the quantity of bananas sold
• D)the demand for bananas to exceed the supply of bananas

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Definitions:

Commutative Justice

The degree to which an exchange or a transaction is fair to all parties.

Outcomes

The results or consequences of actions or events, often measured to assess effectiveness or success.

Particularistic Criteria

involves judging or evaluating individuals based on characteristics specific to that individual, rather than on universal standards.

Cultural Relativism

The principle that an individual's beliefs and activities should be understood by others in terms of that individual's own culture.