Suppose You Live in a Community with No Price Controls

question 33

Multiple Choice

Suppose you live in a community with no price controls.What do you expect to happen if your town borders a community where there is a binding price floor on most products?

• A) Prices in the legal market in the community with a binding price floor would fall.
• B) There would be smaller surpluses in the community with a binding price floor.
• C) More consumers would purchase the product in the community without a price floor.
• D) The black market in the community with a binding price floor would be larger.
• E) Sales of the product in the community with a binding price floor would increase.

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Definitions:

Probation Officers

Officials responsible for supervising individuals sentenced to probation instead of or after serving time in prison, ensuring compliance with probation conditions.

Schemas

Mental structures or frameworks that organize and interpret information, influencing cognition and perception.

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The study or systematic classification of types that have common characteristics, often used in sociology, psychology, and other fields to understand broad patterns.

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Responses or changes in behavior or attitude due to external stimuli or events.