If a Good Is Subject to a Binding Price Ceiling

question 93

Multiple Choice

If a good is subject to a binding price ceiling and Anna purchases it on the black market,what can she expect to happen to the availability of the good over time?

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

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Definitions:

Type A Behavior Pattern

A personality style characterized by high levels of competitiveness, self-imposed stress, aggression, and a sense of urgency.

Time Urgency

A feeling of pressure to complete tasks or make decisions quickly, often resulting in elevated stress levels and a hurried pace of life.

Easily Aroused Hostility

A personality trait characterized by a quick tendency to become hostile or angry in response to perceived threats or frustrations.

Predictability Of Reactions

The extent to which the responses or outcomes of a system or individual to specific stimuli or conditions can be anticipated based on past interactions or known patterns.