One Likely Result of a Price Ceiling Is That

question 125

Multiple Choice

One likely result of a price ceiling is that:

• A) a surplus of product would result.
• B) the price charged in the market would be above the equilibrium price.
• C) the price charged in the market would be the equilibrium price.
• D) the available product must be rationed.

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Definitions:

Cotton Industry

A sector of the economy focused on the production, processing, and distribution of cotton, historically important to the textile industry.

Traditional Norms

Conventional rules and values that govern behaviors and practices within a society or group, typically passed down from one generation to the next.

Strain

In sociology, a term referring to the pressure that people feel when they are exposed to social structures that impede the attainment of culturally approved goals.

Social Movement

A collective effort by a large group of people to bring about or resist social change.