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Could a Price Ceiling Decrease Consumer Surplus

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Could a price ceiling decrease consumer surplus?


Definitions:

Self-Serving Bias

The tendency to take credit for one’s successes and to deny responsibility for one’s failures.

False Consensus Effect

Observers’ overestimation of the degree to which everybody else thinks or acts the way they do.

Social Comparison

The process by which individuals evaluate their thoughts, feelings, behaviors, and abilities in relation to others.

False Consensus Effect

A cognitive bias whereby individuals overestimate the extent to which their beliefs, feelings, and behaviors are shared by others.

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