Refer to the Accompanying Figure, Which Shows Both Short-Run and Long-Run

question 95

Multiple Choice

Refer to the accompanying figure, which shows both short-run and long-run demand and supply curves. If there is a $4 binding price ceiling imposed on a pharmaceutical drug, what will be the amount of the disequilibrium in the short run?

• A) There will be a shortage of 1,500,000 units.
• B) There will be a shortage of 800,000 units.
• C) There will not be a shortage; there will be a surplus.
• D) There will be a shortage of 2,000,000 units.
• E) There will be a shortage of 500,000 units.

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Definitions:

Ethically Questionable Tactics

Strategies that raise moral or ethical concerns regarding their appropriateness or fairness.

Distributive Tactics

Strategies used in negotiation that focus on dividing a fixed amount of resources, often resulting in a win-lose scenario.

Dirty Tricks

Unethical or underhanded tactics used in negotiations or competition to gain an advantage, such as misinformation, sabotage, or manipulation.

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