Consider a Market with a Price Ceiling

question 57

Multiple Choice

Consider a market with a price ceiling.If the price ceiling is raised which of the following would happen?

• A)The consumer surplus would increase,the producer surplus would decrease and the dead weight loss would decrease
• B)The consumer surplus would increase,the producer surplus would decrease and the dead weight loss would increase
• C)The consumer surplus,the producer surplus and the dead weight loss would all decrease
• D)The consumer surplus,the producer surplus and the dead weight loss would all increase
• E)The consumer surplus would decrease,the producer surplus would increase and the dead weight loss would decrease

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Definitions:

Correlation Coefficient

A statistical measure that quantifies the degree to which two variables are related or move together.

Grammaticality

concerns the conformity to the rules of grammar of a particular language.

Age

The length of time that a person or entity has existed from its birth or creation to a given point.

Whorfian Hypothesis

The theory that the structure of a language determines or greatly influences the modes of thought and behavioral characteristic of the culture in which it is spoken.