If the Government Removes a Binding Price Ceiling from a Market

question 67

Multiple Choice

If the government removes a binding price ceiling from a market, then the price paid by buyers will

• A)​increase, and the quantity exchanged will increase.
• B)​increase, and the quantity exchanged will decrease.
• C)​decrease, and the quantity exchanged will increase.
• D)​decrease, and the quantity exchanged will decrease.

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Definitions:

Implied Ratification

The tacit approval or acceptance of an act by behaving in a manner that assumes the act was properly authorized.

License

A permit from an authority to own or use something, do a particular thing, or carry on a trade.

Certain Professions

Specific occupations that require specialized education, skills, or certifications, often regulated by professional bodies or laws.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.