If a Government-Imposed Price Ceiling Causes the Observed Price in a Market

question 67

Multiple Choice

If a government-imposed price ceiling causes the observed price in a market to be below the equilibrium price,

• A) there will be excess demand.
• B) there will be excess supply.
• C) the curves will shift to make a new equilibrium at the regulated price.
• D) None of the above.

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Definitions:

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, such as heart rate, digestion, and respiratory rate.

Somatic Nervous System

Part of the peripheral nervous system that handles voluntary control of body movements through the action of skeletal muscles.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, which coordinates body activities and processes sensory information.

Brain

The organ in the head of living creatures that controls their actions, thoughts, feelings, and interactions with their environment.