If a Good Is Subject to a Binding Price Floor

question 103

Multiple Choice

If a good is subject to a binding price floor and someone purchases it on the black market,what would he or she expect to happen to the availability of the good over time?

• A) The availability of the good will fall over time as the supply curve becomes more elastic and the demand curve becomes more inelastic.(The surplus of the good will fall. )
• B) The availability of the good will fall over time as both the supply and demand curves become more elastic.(The surplus of the good will fall. )
• C) The availability of the good will rise over time as both the supply and demand curves become more elastic.(The surplus of the good will rise. )
• D) The availability of the good will fall over time as the demand curve becomes more elastic and the supply curve becomes more inelastic.(The surplus of the good will fall. )
• E) The availability of the good will not change over time.

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Definitions:

Stable Conformation

Stable conformation describes the most energetically favorable spatial arrangement of atoms in a molecule, minimizing strain and maximizing stability.

Spiro [4.4]Nonane

A type of spiro compound composed of two cyclobutane rings sharing a single carbon atom, named for its nine total carbon atoms within the structure.

Newman Projection

A way to visualize the conformation of a chemical compound by looking down the bond between two carbon atoms, showing how substituents are spatially arranged.

C3-C4

Refers to the connection or transformation between the third and fourth carbon atoms in a molecular structure.