Price Ceilings Will Likely

question 32

Multiple Choice

Price ceilings will likely

• A)result in the accumulation of surpluses.
• B)increase the volume of transactions as we move along the demand curve.
• C)increase production as producers respond to higher consumer demand at the low ceiling price.
• D)result in the development of black markets.

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Definitions:

Individual Transferable Quota (ITQ)

A fisheries management tool that allocates a certain quantity of fish that can be caught by individuals or companies.

Market Price

The present cost at which an item or service may be purchased or sold within a specific market.

Individual Transferable Quota (ITQ)

A policy tool that allocates the right to harvest a natural resource amount among users through transferable quotas.

Market Price

The price at which a good or service can be bought or sold in the open market, determined by supply and demand.