Suppose That the Government Sets a Price Ceiling in the Market

question 81

Multiple Choice

Suppose that the government sets a price ceiling in the market for potatoes at $0.75 per pound of potatoes.If the equilibrium price of potatoes is $1.10,the result of the price ceiling will be a _____________ of potatoes and ____________ exchanges will be made with the price ceiling than would be made in a free market.

• A) shortage; fewer
• B) surplus; fewer
• C) shortage; more
• D) surplus; more

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Definitions:

Indirect Claims

Requests or complaints made in a subtle, non-confrontational manner, focusing on context and rationale before stating the actual claim to foster understanding.

Adjustment Refusals

Responses where a request for change, correction, or accommodation is denied.

Refuse Positively

The skill of saying no or declining in a manner that is polite and maintains good relationships.

Negative Announcement

A negative announcement communicates unfavorable news or decisions, which can include changes in policies, layoffs, or the cancellation of events.