When Government Imposes a Price Ceiling or a Price Floor

question 210

Multiple Choice

When government imposes a price ceiling or a price floor on a market,

• A)price no longer serves as a rationing device.
• B)efficiency in the market is enhanced.
• C)shortages and surpluses are eliminated.
• D)both buyers and sellers become better off.

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Definitions:

Probability

An indicator of how probable it is for an event to happen, represented by a number ranging from 0 to 1.

Births

The occurrence of bringing forth a new individual from a parent organism, initiating a new life.

Independent

A condition where two events have no influence on each other, making their occurrences or outcomes entirely unrelated.

Seat Belts

Safety straps installed in vehicles designed to secure passengers during a collision, reducing the risk of injury or death.