If a Price Ceiling Is Set Above the Current Market

question 141

Multiple Choice

If a price ceiling is set above the current market clearing price, then

• A) a surplus must immediately occur.
• B) a shortage must immediately occur.
• C) there will be incentives for black markets to develop.
• D) quantity demanded will remain equal to quantity supplied at the current market clearing price.

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Definitions:

Performance Impairment

A decrease in the ability to perform tasks or activities at a previously established level of competence, often due to physiological or psychological factors.

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A mindset or perspective that focuses on unfavorable outcomes or attributes, often leading to pessimistic attitudes or expectations.

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Individuals in the United States who are of European descent.

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Quantitative measures used to assess human intelligence, typically obtained through standardized testing and expressed as a number relative to a norm group.