A Price Ceiling

question 159

Multiple Choice

A price ceiling

• A) is an illegal price.
• B) is the price that exists in a black market.
• C) is the maximum price that can legally be charged.
• D) Both answers A and B are correct.
• E) Both answers B and C are correct.

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Definitions:

Effortful Thinking

The cognitive processing that requires a deliberate, conscious effort to solve complex problems or to gain new insights.

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by its similarity to a prototype or example.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision.

Heuristic

A rule-of-thumb or shortcut that is used to make decisions or solve problems more quickly.