If the Government Set a Price Ceiling at $8

question 49

Multiple Choice

If the government set a price ceiling at $8

• A)there would be a temporary surplus,then prices would fall to equilibrium.
• B)there would be a permanent surplus,at least until the price floor was lifted.
• C)the price would fall back to the equilibrium price.
• D)the price floor would not have any effect on this market.

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Definitions:

Cultural Revolution

The Cultural Revolution was a socio-political movement in China, led by Mao Zedong from 1966 until 1976, aimed at preserving Chinese Communism by purging remnants of capitalist and traditional elements from Chinese society.

Great Leap Forward

An economic and social campaign by the Communist Party of China (1958-1962) aimed at rapidly transforming China into a socialist society and increasing industrial and agricultural production.

Communists

Individuals or groups who support or believe in the principles of communism, which is a political and economic ideology advocating for a classless society in which all property and wealth are owned communally.

Private Property

Legal designation for the ownership of property by non-governmental legal entities or individuals, protected by law.