If the Government Imposes a Price Ceiling for Some Product,and

question 69

Multiple Choice

If the government imposes a price ceiling for some product,and a black market subsequently develops that gains control of all of the reduced output of the product,then

• A)the black market price will be lower than the ceiling price.
• B)excess profits will flow back to consumers.
• C)the quantity demanded will exceed quantity supplied at the black market price.
• D)the black market price will be higher than the free-market equilibrium price.
• E)consumers will be better off than they would be in the absence of the black market.

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Definitions:

Privileges

Special rights or advantages available only to a particular person or group of people.

Immunities

Protections or exemptions from certain legal requirements or actions, often granted to specific individuals or groups under law.

Grant Money

Financial assistance provided by government agencies, foundations, or corporations to individuals, nonprofits, or businesses, typically for a specific project or purpose.

Discriminate

To treat someone differently or unfairly based on characteristics such as race, gender, age, or religion.