Exhibit 4.8 -Suppose a Market Is in Equilibrium. If a Price Ceiling

question 77

Multiple Choice

Exhibit 4.8

-Suppose a market is in equilibrium. If a price ceiling is set by the government below the equilibrium price, which of the following is most likely to occur?

• A) a decline in quantity demanded
• B) a surplus
• C) a shortage
• D) an increase in the quantity being sold
• E) a new equilibrium

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Definitions:

Analyzed

Examined carefully and in detail so as to identify causes, key factors, possible results, etc.

Summarized

The process of presenting data or information in a condensed form, highlighting key findings or patterns.

Descriptive Statistics

Statistical measures that describe and summarize the main features of a collection of data without drawing conclusions about a larger population.

Histogram

A graphical representation that displays the distribution of data using bars of different heights.