When Quantity Demanded Increases at Every Possible Price,we Know That

question 31

Multiple Choice

When quantity demanded increases at every possible price,we know that the demand curve has

• A) shifted to the left.
• B) shifted to the right.
• C) not shifted;rather,we have moved along the demand curve to a new point on the same curve.
• D) not shifted;rather,the demand curve has become steeper.

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Definitions:

Price Ceiling

A legally imposed maximum price on a good or service, usually set below the equilibrium price to keep the goods affordable for consumers.

Equilibrium Price

The cost at which the amount of a product or service being sought matches the amount available, resulting in a stable market.

Price Ceiling

A government-imposed limit on how high the price of a product can be charged in the market to protect consumers from excessive prices.

Government

The organization that governs or administers a specific territory or country, responsible for creating and enforcing laws, policies, and regulations.