Which of the Following Statements Regarding a Price Ceiling in a Perfectly

question 63

Multiple Choice

Which of the following statements regarding a price ceiling in a perfectly competitive market is incorrect?

• A)There will be no deadweight loss with the price ceiling.
• B)The will be excess demand resulting from the price ceiling.
• C)The market will under produce relative to the efficient level.
• D)Consumer surplus may either increase or decrease with a price ceiling.

---

Definitions:

Opinion Polls

Surveys conducted to gather the public's views or preferences regarding various topics, including politics, culture, and consumer products, used to infer the opinion of a larger population.

Lynch Mobs

Groups of people who take the law into their own hands to punish an individual, often without a fair trial, historically associated with racial violence in the United States.

Loose Cigarettes

Single cigarettes sold individually, often illegally, as they bypass taxation and standard packaging regulations.

Eric Garner

An African American man whose death during an arrest in New York City sparked nationwide protests and debates over police use of force and racial discrimination.