Suppose You Live in a Community with No Price Controls

question 50

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 non-binding price floor on most products?

• A) The products sold will become more plentiful.
• B) The products sold will become less plentiful.
• C) There will be upward pressure on the prices.
• D) There will be downward pressure on the prices.
• E) The price and the quantity sold in the community without a non-binding price floor will be the same as the price and quantity in the community with a non-binding price floor.

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Definitions:

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.

Moderate Drinking

Consuming alcohol in a manner that is within recommended guidelines and limits, minimizing health risks.

Fetal Alcohol Effects

A range of effects that can occur in an individual whose mother drank alcohol during pregnancy, including physical, mental, behavioral, and/or learning disabilities.

Alcohol

A psychoactive substance that is commonly consumed in beverages and can alter mood and behavior, presenting potential risks and benefits to health.