Which of the Following Statements Best Describes the Unintended Consequences

question 81

Multiple Choice

Which of the following statements best describes the unintended consequences of usury ceilings?

• A)Usury ceilings placed above equilibrium increase the quantity supplied of loans and decrease the quantity demanded of loans. This creates a shortage.
• B)Usury ceilings cause the demand for loans to increase. Since supply does not increase, a shortage emerges.
• C)Usury ceilings placed below the equilibrium interest rate cause the quantity demanded of loans to be greater than the quantity supplied. As a result, there is a shortage.
• D)Usury ceilings cause the demand curve to shift rightward and the supply curve to shift leftward. As a result, the market no longer clears and a shortage of loans develops.

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Definitions:

Commission Rate

The percentage of a sale price paid to the individual or entity that facilitated the sale.

Graduated Commission

A commission structure where the rate increases with the volume or value of sales achieved.

Commission Rate

The percentage or fixed payment rate applied to transactions, typically used to compensate salespeople.

Graduated Commission

A commission structure where the rate of commission increases with the level of sales achieved, incentivizing higher sales performance.