If a Binding Price Ceiling Is in Effect and If

question 84

Multiple Choice

If a binding price ceiling is in effect and if the demand for the product increases,one consequence would be

• A)a decrease in the amount of excess supply.
• B)a decrease in the amount of excess demand.
• C)an increase in the amount of excess supply.
• D)an increase in the amount of excess demand.
• E)no change in the excess supply or demand for the product.

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Definitions:

Simplicity

The quality or condition of being easy to understand or do, often characterized by clarity, purity, or uncomplicatedness.

Perceptual Hypothesis

An educated guess or interpretation made by the brain about the nature of sensory stimuli based on incomplete or ambiguous information.

Trapezoid Shape

A quadrilateral with at least one pair of parallel sides, often used in geometry.

Retina

The light-sensitive layer at the back of the eye that contains cells which trigger nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.