What Is the Long-Run Consequence of a Price Ceiling Law

question 108

Multiple Choice

What is the long-run consequence of a price ceiling law?

• A) A surplus will continue to exist and will grow larger over time.
• B) A surplus will continue to exist and will grow smaller over time.
• C) A shortage will continue to exist and will grow larger over time.
• D) A shortage will continue to exist and will grow smaller over time.
• E) The amount of the surplus will not change.

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Definitions:

Innate Patterns

Refers to behaviors or actions that are genetically hardwired and manifest without the need for learning or experience.

Biologically Determined

Traits, behaviors, or characteristics that are influenced by genetic makeup rather than environmental factors.

Instinct

Natural, unchanging behaviors exhibited by animals in reaction to specific triggers.

Drive-Reduction

A theory of motivation that posits the reduction of physiological needs drives behavior towards achieving homeostasis.