In a Market Where Government Has Set the Maximum Price

question 98

Multiple Choice

In a market where government has set the maximum price below the equilibrium price, one might expect:

• A)quantity demanded to equal quantity supplied.
• B)excess supply.
• C)a black market to develop as individuals try to take advantage of unexploited opportunities.
• D)quantity supplied to surpass quantity demanded.

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Definitions:

Express Warranties

Explicit guarantees made by a seller about the quality, safety, or performance of a product or service.

Certain Circumstances

Refers to specific conditions or factors that affect or determine the outcome or application of a rule in a particular case.

Disclaimer

A statement that denies responsibility or relinquishes a right, often used to avoid legal liability.

Warranty of Merchantability

A guarantee that a product will meet reasonable expectations of quality and performance.