If a Price Ceiling Were Established Above the Equilibrium Price

question 304

Multiple Choice

If a price ceiling were established above the equilibrium price,

• A) it would have no effect on the quantity demanded.
• B) it would create a shortage.
• C) it would create a surplus.
• D) none of the above.

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Definitions:

Globe Theatre

A historic theater in London associated with William Shakespeare, known for its open-air, circular design.

Pronoun

A word that takes the place of a noun, used to avoid repetition or to refer to participants in the discourse.

Pronoun

A part of speech that is used in place of a noun or noun phrase, often to avoid repetition or when the antecedent is understood.

Performers

Individuals who entertain audiences by acting, singing, dancing, or playing musical instruments.