Suppose a Binding Output Quota Is Imposed in a Previously

question 52

Multiple Choice

Suppose a binding output quota is imposed in a previously competitive market with free-market equilibrium price and quantity.The result is

• A)higher price and higher quantity exchanged.
• B)higher price and lower quantity exchanged.
• C)lower price and lower quantity exchanged.
• D)lower price and higher quantity exchanged.
• E)no change in price or quantity exchanged.

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Definitions:

Value-Expressive Function

A psychological function wherein attitudes and preferences express the individual's central values and self-concept.

Motives

Internal psychological forces that prompt a person toward a particular action or behavior, typically stemming from personal desires or needs.

ABC Model

A cognitive behavioral approach that describes the relationships between antecedents, behavior, and consequences; often used in psychology to understand and modify behavior.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.