Currently, 100,000 Units of a Good Are Traded on a Market

question 42

Multiple Choice

Currently, 100,000 units of a good are traded on a market. The government imposes a limit of a maximum of 50,000 units that may be traded on the market. This will:

• A)create excess supply.
• B)create excess demand.
• C)raise price.
• D)have no effect on the market.

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Definitions:

Experiential System

A cognitive process based on sensory experiences, intuition, and personal feelings, as opposed to analytical thinking.

Schema Accessibility

The ease with which a mental schema is activated in one's mind, influencing perception and behavior in specific situations.

Salience

The quality of being particularly noticeable or important; the state or condition of something that stands out or is prominently perceived.

Accessibility

The ease with which information, resources, or services can be reached or used by people.