If the Government Removes a Binding Price Ceiling from a Market,then

question 86

Multiple Choice

If the government removes a binding price ceiling from a market,then the price paid by buyers will

• A)increase,and the quantity sold in the market will increase.
• B)increase,and the quantity sold in the market will decrease.
• C)decrease,and the quantity sold in the market will increase.
• D)decrease,and the quantity sold in the market will decrease.

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Definitions:

Consumer Product Safety Commission

A U.S. government agency responsible for protecting the public from unreasonable risks of injury or death associated with consumer products.

Mandatory Safety Standards

Regulations that specify minimum requirements for the health and safety conditions in workplaces or products to protect consumers and workers.

Ad Substantiation

The requirement for advertisers to have evidence supporting their claims, ensuring that advertisements are truthful and not misleading.

Magnuson-Moss Act

A federal law in the United States that governs warranties on consumer products.