If a Price Ceiling Is Set Above the Equilibrium Price,then

question 141

Multiple Choice

If a price ceiling is set above the equilibrium price,then

• A) there will be a surplus of the good.
• B) there will be a shortage of the good.
• C) there will be neither a shortage nor a surplus of the good.
• D) the price ceiling will generate revenue for the government.
• E) the price ceiling affects suppliers but not demanders.

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Definitions:

Overconfidence

The psychological state of being too confident in one’s own abilities, often leading to taking greater risks.

Recycling

The process of converting waste materials into new materials and objects, aiming to reduce consumption of fresh raw materials, energy usage, and environmental pollution.

Commons Dilemmas

A situation where individual interests conflict with the collective interest, often resulting in the overuse or degradation of a common resource.

Characteristics of the Resource

The attributes or properties that define the nature, utility, and limitations of a specific resource.