When a Price Ceiling Is Binding, the Goods That Are

question 41

Multiple Choice

When a price ceiling is binding, the goods that are on sale are allocated to buyers using a method:

• A) of random allocation.
• B) whereby the highest bidder wins.
• C) whereby the lowest bidder wins.
• D) whereby buyers purchase lottery tickets to see who will be able to buy the product.

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Definitions:

Global Climate Change

A long-term change in the Earth's climate, especially a change due to an increase in the average atmospheric temperature.

Rising Sea Levels

The increase in the level of the world's oceans due to the effects of global warming.

Deforestation

The removal of a forest or stand of trees where the land is thereafter converted to a non-forest use.