Assume No Price Ceiling Exists and a Market Is in Equilibrium

question 174

Multiple Choice

Assume no price ceiling exists and a market is in equilibrium. Then a price ceiling is established which is below the market equilibrium. What would result?

• A) Shortage.
• B) Equilibrium.
• C) Surplus.
• D) Equity.

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Definitions:

Basal Metabolic Rate

The amount of energy expended by a body at rest in a neutral environment, necessary to maintain basic bodily functions.

Appetite-Enhancing Center

A region in the brain, often associated with the hypothalamus, that stimulates the desire to eat.

Hormone

A chemical substance produced in the body that controls and regulates the activity of certain cells or organs.

PYY

A hormone, short for Peptide YY, produced in the gut in response to eating and is associated with reducing appetite and inhibiting food intake.