The Imposition of a Binding Price Ceiling on a Market

question 136

Multiple Choice

The imposition of a binding price ceiling on a market causes quantity demanded to be

• A)​greater than quantity supplied.
• B)​less than quantity supplied.
• C)​equal to quantity supplied.
• D)​Both (a) and (b) are possible.

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Definitions:

Certified Check

A check that has been accepted by the bank on which it is drawn. Essentially, the bank, by certifying (accepting) the check, promises to pay the check at the time the check is presented.

Paper Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to the order of a person named therein.

Midnight Deadline

A point in time specified as the end of a day or deadline, often used in the context of projects, assignments, or contracts to indicate the final moment something is due.

Forges

Workshops or places equipped with furnaces and tools for heating and shaping metal objects.