Do Price Ceilings Misallocate Resources

question 151

Multiple Choice

Do price ceilings misallocate resources?

• A) Yes, because people who value the good the most are unable to bid it away from low-valued uses.
• B) Yes, because people who value the good the least are unable to afford the good.
• C) No, because the good is still allocated based on willingness to pay.
• D) No, because the rich and poor alike stand an equal chance of getting the good.

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Definitions:

Palisade Mesophyll

The layer in the leaf where most photosynthesis takes place, comprised of tightly packed cells containing chloroplasts, effectively capturing light energy. This is a rephrased and new definition for the "Palisade Layer."

Guard Cells

Specialized cells in the epidermis of leaves, stems, and other organs that regulate gas exchange by opening and closing stomatal pores.

Stomata

Tiny openings or pores often found on the underside of leaves that are involved in gas exchange and transpiration in plants.

Cuticle

A protective and waxy or hard layer covering the epidermis of plants, invertebrates, or other organisms.