A Nonbinding Price Ceiling

question 207

Multiple Choice

A nonbinding price ceiling
(i) Causes a surplus.
(ii) Causes a shortage.
(iii) Is set at a price above the equilibrium price.
(iv) Is set at a price below the equilibrium price.

• A)(i)only
• B)(iii)only
• C)(i)and (iii)only
• D)(ii)and (iv)only

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Definitions:

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, affecting blood pressure, heart rate, and sugar metabolism.

Sympathetic

Pertaining to the part of the autonomic nervous system that typically prepares the body for intense physical activity and is often referred to as the fight-or-flight response.

Parasympathetic

Pertaining to the division of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.

Sympathetic

Part of the autonomic nervous system that increases the body's readiness for action in stress situations.