Garbanzo Beans -Consider the Above Table. If the Government Imposes a Price

question 342

Multiple Choice

Garbanzo Beans

-Consider the above table. If the government imposes a price ceiling on garbanzo beans of $8, what would be the likely result?

• A) a surplus of 2,000 garbanzo beans on the market
• B)a shortage of 2,000 garbanzo beans on the market
• C)Market equilibrium will be reached.
• D)The quantity demanded of garbanzo beans would fall to zero.

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Definitions:

Rawlsian Justice

A theory of distributional justice that concludes that the social contract emerging from the “original position” would call for an income distribution that would maximize the well-being of the worst-off member of society.

Risk Averse

A preference for avoiding loss over making a gain.

Marginal Utility

The extra pleasure or benefit gained from using one more unit of a product or service.

Utilitarian Justice

A principle focusing on the greatest happiness or benefit for the greatest number of people as the measure of what is just.