Assume There Is a Price Ceiling Imposed on a Good

question 5

Multiple Choice

Assume there is a price ceiling imposed on a good which is below the equilibrium price.Which of the following changes would reduce the size of the surplus?

• A)An increase in demand.
• B)A decrease in demand.
• C)An increase in supply.
• D)A decrease in supply.
• E)None of the above; there is no surplus.

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Definitions:

Construct Validity

The extent to which a test or measurement tool accurately measures the theoretical construct it is intended to measure.

Content Validity

The extent to which a test measures all aspects of the concept it intends to measure.

Predictive Validity

The extent to which a test or measure accurately predicts future performance or outcomes.

Test-retest Reliability

A measure of the consistency of a psychological test or assessment when administered at two different times.