Suppose the Market Supply Is Initially at S1 and a Price

question 24

Multiple Choice

Suppose the market supply is initially at S1 and a price ceiling is set at 8.If supply shifts from S1 to S2,then

• A) The price ceiling will no longer bind.
• B) The price ceiling will prevent output from changing.
• C) The size of the shortage will increase.
• D) The market will not reach equilibrium.

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Definitions:

Firm Use

The manner in which a company utilizes its resources, including its human, financial, and physical assets.

Certificates

Official documents or records that verify the completion of education, training, or certification programs, or that authenticate facts.

Quartile

A statistical term describing any of the three points that divide a ranked data set into four equal parts, each representing one-fourth of the distributed sample.

Pay Range

The scope of compensation, from minimum to maximum, that an organization is willing to pay for a specific job or level of responsibility.