The Imposition of a Binding Price Ceiling on a Market

question 47

Multiple Choice

The imposition of a binding price ceiling on a market causes

• A)quantity demanded to be greater than quantity supplied.
• B)quantity demanded to be less than quantity supplied.
• C)quantity demanded to be equal to quantity supplied.
• D)the price of the good to be greater than its equilibrium price.

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Definitions:

Negative Punishment

Removing a desirable stimulus to decrease the likelihood of a behavior being repeated.

Positive Punishment

In operant conditioning, a method that involves adding an unfavorable outcome or event following an undesired behavior, intended to decrease the likelihood of the behavior recurring.

Law of Effect

A principle of behavior that states responses followed by satisfaction will become more likely to occur, while those followed by dissatisfaction will become less likely.

Fear

An emotional response to a perceived threat, which serves as a basic survival mechanism by triggering the fight or flight response.