If the Government Implements a Price Ceiling on Insulin,this Will

question 26

Multiple Choice

If the government implements a price ceiling on insulin,this will

• A)increase the price consumers will pay for insulin.
• B)decrease the quantity of insulin the manufacturers will be willing to supply.
• C)have to be set above the market equilibrium price to be effective.
• D)encourage manufacturers to produce and sell more insulin to increase their profits.

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Definitions:

Statute of Frauds

is a legal principle that requires certain types of contracts to be written and signed in order to be enforceable.

Executory Contracts

Contracts under which both parties to the agreement have duties remaining to be performed. If a contract's major obligations are unfulfilled by both parties, it is seen as executory.

One-Year Provision

The one-year provision is a legal clause, often found in statutes of frauds, which requires certain contracts to be in writing and signed if they cannot be performed within one year.

Majority Rule

A principle in democracy stating that the decisions and choices of the greater number of participants should guide the actions and policies of the group.