If a Good Is Subject to a Binding Price Ceiling

question 86

Multiple Choice

If a good is subject to a binding price ceiling and you purchase it on the black market,what do you expect to happen to the price over time?

• A) The black market price will rise over time as the supply curve becomes more elastic and the demand curve becomes more inelastic.
• B) The black market price will fall over time as both the supply and demand curves become more inelastic.
• C) The black market price will rise over time as the demand curve becomes more elastic and the supply curve becomes more inelastic.
• D) The black market price will fall over time as both the supply and demand curves become more elastic.
• E) The black market price will not change over time.

---

Definitions:

Relay Coil

The inductive component of a relay that, when energized, creates a magnetic field to open or close the circuit contacts.

Addressing Format

Refers to the specific way in which addresses are structured and presented, often in the context of computer networks or digital communications.

PLCs

Programmable Logic Controllers, specialized computers used to control industrial machines and processes.

Input Device

A hardware or component that allows information to be provided to a computer or machine, such as a keyboard, mouse, or sensor.