When the Government Imposes a Binding Price Ceiling on a Competitive

question 252

True/False

When the government imposes a binding price ceiling on a competitive market, a surplus of the good arises, and sellers must ration the scarce goods among the large number of potential buyers.

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Definitions:

Copper Sulfate

A blue crystalline chemical compound of copper and sulfate ions, used in various applications such as agriculture and chemistry.

Bluing

A process used to protect steel against rust by forming a thin protective layer of magnetite (Fe3O4) on its surface.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Soda Pop

A sweetened, carbonated beverage, often flavored and containing caffeine, colours, and preservatives.