When a Price Ceiling Is in Effect

question 8

Multiple Choice

When a price ceiling is in effect:

• A) suppliers get too strong a signal from demanders about their needs.
• B) demanders have no incentive to signal their needs to suppliers.
• C) all of demanders' needs are met at the lower price, so there is no need to signal anything to suppliers.
• D) demanders cannot signal their needs to suppliers.

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Definitions:

Slavery

A system where individuals are owned by others, deprived of personal freedom and compelled to perform labor or services without the right to refuse.

Slave Population

The demographic group of people subjected to slavery, focusing on their numbers, distribution, and conditions throughout history, particularly in contexts like the United States before abolition.

Federalism

A system of government where power is divided between a central government and various regions or states.

National Government

A political organization holding sovereign authority over a nation, responsible for governance, and the implementation of laws and policies.