Suppose That the Government Sets a Maximum Price for Insulin

question 41

Multiple Choice

Suppose that the government sets a maximum price for insulin below the equilibrium price.In this situation,

• A) there will be an efficient level of insulin produced.
• B) there will be excess supply of insulin.
• C) total surplus will be lower than it would be at the market equilibrium price.
• D) total surplus will be greater than it would be at the market equilibrium price.

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Definitions:

Ages

The length of time that a person or object has existed, typically measured in years.

Unimodal

Describing a distribution that has a single mode or peak.

Skewed

A term describing a distribution that is not symmetrical, where one of its tails is longer than the other, indicating a deviation from the normal distribution.

Histogram

A graphical representation of data distribution where data is grouped into ranges and each range's frequency is represented by the height of a bar.