If the Government Imposes a Price Ceiling That Is Above

question 123

Multiple Choice

If the government imposes a price ceiling that is above the equilibrium price,then the market will experience

• A) an equilibrium.
• B) a shortage.
• C) an excess supply.
• D) no scarcity.

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Definitions:

Normal Good

A type of good for which demand increases as the income of individuals increases, indicating a direct relationship between income and demand.

Demand-Increasing Factor

Elements or conditions that lead to an increase in demand for a product or service, such as a rise in consumer income or a change in tastes.

Medicaid Program

A joint federal and state program that helps with medical costs for people with limited income and resources.