If a Good Is Subject to a Binding Price Ceiling

question 86

Multiple Choice

If a good is subject to a binding price ceiling and you purchase it on the black market,what do you expect to happen to the price over time?

• A) The black market price will rise over time as the supply curve becomes more elastic and the demand curve becomes more inelastic.
• B) The black market price will fall over time as both the supply and demand curves become more inelastic.
• C) The black market price will rise over time as the demand curve becomes more elastic and the supply curve becomes more inelastic.
• D) The black market price will fall over time as both the supply and demand curves become more elastic.
• E) The black market price will not change over time.

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Definitions:

Major Structure

Refers to the most abundant or stable structure among several isomers or resonant structures of a molecule.

Synthetic Steps

The individual and successive chemical reactions conducted to synthesize a desired compound, forming a part of an overall synthetic strategy.

Transformation

The alteration of a chemical compound into another compound through a chemical reaction.

Chromic Acid Test

A qualitative test used to distinguish primary and secondary alcohols by their oxidation to carboxylic acids or ketones, respectively.