A Price Ceiling Set Below the Equilibrium Price Will

question 71

Multiple Choice

A price ceiling set below the equilibrium price will

• A) clear the market for the good.
• B) result in a shortage of the good.
• C) result in a surplus of the good.
• D) induce new firms to enter the industry.

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Definitions:

Endocrine System

A collection of glands that produce hormones which regulate metabolism, growth and development, tissue function, and mood.

Exocrine Glands

Glands that release their secretions through ducts either to the external environment or into the internal organ surfaces.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, hunger, and thirst.

Plasma Proteins

Proteins present in blood plasma that play roles in blood clotting, immunity, and other functions.