If a Government Imposed Price Ceiling Legally Sets the Price

question 226

Multiple Choice

If a government imposed price ceiling legally sets the price of beef below market equilibrium, which of the following will most likely happen?

• A) The quantity of beef demanded will decrease.
• B) The quantity of beef supplied will increase.
• C) There will be a surplus of beef.
• D) There will be a shortage of beef.

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Definitions:

Total Cost

The aggregate cost involved in manufacturing goods or offering services, which covers both stable and changeable outlays.

Producing

The process of creating goods or services to be sold or used, involving various inputs to generate output.

Boots

Boots are a type of footwear that cover the feet and the ankles, and sometimes extend up to the knees or hips, designed for various purposes including fashion, protection, and work.

Pairs

A term that can refer to two related or matched items or elements, commonly used in various contexts.