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:

Pubertal Changes

Physical and hormonal transformations occurring during puberty that lead to sexual maturity and the ability to reproduce.

Deepening of the Voice

A change that typically occurs during puberty, involving the lowering of vocal pitch, especially noted in males.

Four-Year Institution

An educational establishment that offers bachelor's degrees and typically requires four years of full-time study.

Public University

An institution of higher education and research which is supported by public funds and usually affiliated with a national or state government.