When a Binding Price Ceiling Is Imposed on a Market

question 193

Multiple Choice

When a binding price ceiling is imposed on a market,

• A)price no longer serves as a rationing device.
• B)the quantity supplied at the price ceiling exceeds the quantity that would have been supplied without the price ceiling.
• C)all buyers benefit.
• D)All of the above are correct.

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Definitions:

Batesian Mimicry

A form of mimicry where a harmless species evolves to imitate the warning signals of a harmful species to deter predators.

Resource Partitioning

Mechanism that increases the number of niches by apportioning the supply of a resource such as food or living space between species.

Asian Rice Paddy

Waterlogged fields where rice is grown, typically found in Asian countries, integral for rice cultivation.

Predator-prey Cycle

The dynamic, cyclical relationship between predators and their prey, where each affects the other's population size.