Exhibit 4-3 Refer to Exhibit 4-3. If Price P₃ Is a Price

question 66

Multiple Choice

Exhibit 4-3
Refer to Exhibit 4-3. If price P₃ is a price ceiling, then

• A)the price ceiling does not have an effect on the market for good X.
• B)the price at which exchange takes place is P₃.
• C)there is a shortage in the market for good X.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Bay Of Pigs

A failed military invasion of Cuba in 1961 by Cuban exiles, sponsored by the U.S. government, aiming to overthrow Fidel Castro's government.

Groupthink

An occurrence in psychology where the pursuit of agreement or adherence within a group causes choices that are irrational or counterproductive.

Bad Decisions

Choices or judgments that lead to undesirable outcomes due to flawed reasoning or poor judgment.