If the Government Implements a Price Ceiling on Insulin,this Will

question 43

Multiple Choice

If the government implements a price ceiling on insulin,this will

• A)increase the price consumers will pay for insulin.
• B)decrease the quantity of insulin the manufacturers will be willing to supply.
• C)have to be set above the market equilibrium price to be effective.
• D)encourage manufacturers to produce and sell more of insulin to increase their profits.

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Definitions:

Corporate Income Tax

A tax levied by governments on the profits earned by corporations and businesses.

Armored Personnel Vehicles

Military vehicles designed to transport personnel and equipment in combat zones, providing protection against ballistic and explosive threats.

Circular-flow Model

A financial framework depicting the ongoing flow of cash, commodities, and productive inputs between businesses and the public within an economic system.

Resource Market

The marketplace where resources or inputs such as labor, capital, and raw materials are bought and sold.