If the Price Ceiling Is Set Below the Equilibrium Price

question 58

Multiple Choice

If the price ceiling is set below the equilibrium price,

• A) quantity demanded will equal quantity supplied.
• B) there will be a surplus.
• C) there will be a shortage.
• D) demand will be less than supply.

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Definitions:

Laissez-Faire

An economic philosophy advocating for minimal government intervention in business and the economy.

Progressivism

Broad-based reform movement, 1900–1917, that sought governmental action in solving problems in many areas of American life, including education, public health, the economy, the environment, labor, transportation, and politics.

Wilsonian Moralism

Refers to President Woodrow Wilson's foreign policy ideology focused on spreading democracy, supporting national self-determination, and promoting ethical practices in international relations.

Office Of War Information

A U.S. government agency created during World War II to consolidate government news, propaganda efforts, and to promote war information and morale.