If the Government Removes a Binding Price Ceiling from a Market

question 212

Multiple Choice

If the government removes a binding price ceiling from a market, then the price received by sellers will

• A)​decrease, and the quantity sold in the market will decrease
• B)​decrease, and the quantity sold in the market will increase.
• C)​decrease, and the quantity sold in the market will increase
• D)​increase, and the quantity sold in the market will increase.

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Definitions:

Negligently Exceeded

Refers to a scenario where a person or entity surpasses a standard or limit in a careless or unintentionally harmful manner.

Authority

The right or power to make decisions, give orders, or enforce rules.

Vice President

An officer in government or business who ranks below a president, typically responsible for assisting in executive duties.

Private Business Dealings

Commercial transactions or activities that occur between private entities without government involvement.