Suppose Lewis Lives in a Community with No Price Controls

question 152

Multiple Choice

Suppose Lewis lives in a community with no price controls.What would he expect will happen if his town borders a community where there is a binding price floor on most products?

• A) Prices in the legal market in the community with a binding price floor will rise.
• B) Prices in the legal market in the community with a binding price floor will fall.
• C) There will be surpluses in the community with a binding price floor.
• D) More consumers will purchase the product in the community with the price floor.
• E) The black market in his community will be larger than the black market in the community with the binding price floor.

---

Definitions:

Element

A pure chemical substance consisting of one type of atom, distinguished by its atomic number.

Cell Membrane

The semi-permeable membrane surrounding the cytoplasm of a cell, responsible for controlling the movement of substances in and out of the cell.

Body Tracts

Pathways or channels in the body through which biological substances flow, such as the gastrointestinal tract or neural tracts.

Matter

Anything that takes up space and has weight. Liquids, solids, and gases are matter.