Suppose the Government Decides to Eliminate a Binding Price Ceiling

question 102

Multiple Choice

Suppose the government decides to eliminate a binding price ceiling that it had previously imposed on a particular good.It can be expected that

• A)the price would increase,quantity demanded would decrease,and quantity supplied would decrease.
• B)the price would increase,quantity demanded would decrease,and quantity supplied would increase.
• C)the price would decrease,quantity demanded would decrease,and quantity supplied would increase.
• D)the price would decrease,quantity demanded would increase,and quantity supplied would decrease.
• E)no change would take place

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Definitions:

Positive Psychology

The study of happiness and well-being, focusing on strengths and virtues that enable individuals and communities to thrive.

Observer Bias

A form of cognitive bias that occurs when researchers' expectations, beliefs, or preferences influence their observations and recording of data, potentially affecting the validity of the results.

Psychoanalytic Psychology

A branch of psychology focusing on the influence of unconscious mind on human behavior, founded by Freud.

Freud's Ideas

Freud's ideas revolve around psychoanalytic theories, including the unconscious mind, defense mechanisms, the structure of the personality (id, ego, superego), and the psychosexual stages of development.