If the Government Imposes a Price Control on the Price

question 35

Multiple Choice

If the government imposes a price control on the price of wine so that no bottle can be sold for more than $15, you would expect:

• A)supply in that market will decrease
• B)quantity supplied in that market will decrease
• C)supply in that market will increase
• D)demand in that market will not change

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Definitions:

Annual Rate

The interest rate for a period of one year, often used as a standard measure for comparing the returns on investments.

Payment Today

A term typically used in finance that refers to an immediate transaction or payment that has to be made or is made at the current date.

Equal Payments

Regularly scheduled payments of the same amount over the term of a loan or mortgage.

Interest Annually

The amount of interest earned or paid over a one-year period, often expressed as a percentage of the principal.