Which of the Below Is True

question 226

Multiple Choice

Which of the below is true?

• A)​A price ceiling reduces the quantity exchanged on the market, but a price floor increases the quantity exchanged on the market.
• B)​A price ceiling increases the quantity exchanged on the market, but a price floor decreases the quantity exchanged on the market.
• C)​Both price floors and price ceilings reduce the quantity exchanged in the market.
• D)​Both price floors and price ceilings increase the quantity exchanged in the market.

Understand the basic concepts of supply and demand in the market.

Comprehend the effects of price changes on supply and demand.

Analyze the impact of supply and demand shifts on market equilibrium.

Recognize the concept of equilibrium price and quantity in the market.

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Definitions:

Employment Discrimination

Unfair treatment of employees based on race, gender, age, religion, national origin, disability, or other protected characteristics.

Economic Theory

Economic Theory encompasses the models and concepts that describe the behavior of economies, including principles guiding production, distribution, and consumption of goods and services.

Competitive Forces

Factors that influence the competitiveness of a market, including the bargaining power of buyers and suppliers, the threat of new entrants, the threat of substitute products, and the intensity of competitive rivalry.

Personal Prejudices

Bias or preconceived opinions that individuals hold against others or certain ideas, often without proper knowledge or reason.