Figure 6-14 -Refer to Figure 6-14.If the Horizontal Line on the Graph

question 164

Multiple Choice

Figure 6-14
-Refer to Figure 6-14.If the horizontal line on the graph represents a price ceiling,then the price ceiling is

• A)binding and creates a shortage of 20 units of the good.
• B)binding and creates a shortage of 40 units of the good.
• C)not binding but creates a shortage of 40 units of the good.
• D)not binding,and there will be no surplus or shortage of the good.

---

Definitions:

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, influenced by culture, attitudes, emotions, and genetics.

Behavioral Economics

A field that combines insights from psychology and economics to investigate how individuals actually make decisions, challenging the assumption of perfectly rational agents.

Gum

A soft, cohesive substance designed for chewing, made from the sap of certain trees or synthesized materials.

Candy

A sweet tasting confection made from sugar and often combined with fruits, chocolate, or nuts.