When an Effective Price Ceiling Causes a Shortage, Some of the Buyers

question 258

Multiple Choice

When an effective price ceiling causes a shortage, some of the buyers who value the good the most may not be able to get the good. Why does this occur?

• A) The highest-value users cannot outbid the lower-valued users and so the seller cannot distinguish between them.
• B) The highest-value users are eliminated from the market due to the price ceiling.
• C) The price ceiling causes the price to rise so high that even the highest-value users cannot afford the good.
• D) The government purchases most of the goods.

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Definitions:

Focusing Strengths

Emphasizing and utilizing one's capabilities and positive attributes to achieve goals or overcome challenges.

Rejecting Perceptions

The process of dismissing or refuting the way an individual interprets or understands a situation or the viewpoint of another.

Cognitive Empathy

The mental ability to understand and sympathize with another person's feelings or attitudes by putting oneself in their shoes, without necessarily having experienced their emotions directly.

Affective Sharing

The process of sharing emotional experiences with others, fostering empathy and emotional bonds.