If a Good Is Subject to a Binding Price Ceiling

question 86

Multiple Choice

If a good is subject to a binding price ceiling and you purchase it on the black market,what do you expect to happen to the price over time?

• A) The black market price will rise over time as the supply curve becomes more elastic and the demand curve becomes more inelastic.
• B) The black market price will fall over time as both the supply and demand curves become more inelastic.
• C) The black market price will rise over time as the demand curve becomes more elastic and the supply curve becomes more inelastic.
• D) The black market price will fall over time as both the supply and demand curves become more elastic.
• E) The black market price will not change over time.

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Definitions:

Experience

The knowledge or skill acquired through direct observation or participation in events or activities.

Imitating Behaviour

is the act of copying the actions, attitudes, or mannerisms of another individual or group, often as a way to learn or fit in socially.

Shaping

A process in psychology where desired behavior is taught by reinforcing any steps that are closer to the target behavior.

Stimulus Assimilation

The process by which individuals integrate new information into their existing knowledge or frameworks.