When a Government Increases an Effective Price Ceiling for a Product

question 87

Multiple Choice

When a government increases an effective price ceiling for a product

• A) the shortage in the market will be reduced.
• B) the shortage in the market will be increased.
• C) the surplus in the market will be reduced.
• D) the surplus in the market will increase.

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Definitions:

Protonation

The addition of a proton (H+) to an atom, molecule, or ion, usually increasing its net positive charge.

Sodium Hydroxide

A strong base and alkali that is highly soluble in water, forming caustic solutions, commonly used in many industrial and laboratory processes.

Transformation

A thorough or dramatic change in form or appearance.

Isobutylbenzene

An organic compound made up of a benzene ring attached to an isobutyl group, used in the manufacture of other chemicals.