If a Price Ceiling Is Introduced in the Market for Milk

question 69

Multiple Choice

If a price ceiling is introduced in the market for milk below the market equilibrium price,then the producer surplus made by dairy farmers ________.

• A) will increase
• B) will decrease
• C) will not change
• D) might increase or decrease depending on whether the demand for milk increases or decreases
• E) might increase or decrease depending on whether the supply of milk decreases or increases

---

Definitions:

Encouragement

The act of giving support, confidence, or hope to someone, often resulting in increased motivation and positive attitudes.

Self-control Resources

The psychological and emotional capacity of individuals to regulate their thoughts, emotions, and actions, especially in challenging situations.

Temptation

A desire to engage in short-term urges for enjoyment, which might conflict with long-term goals.

Empathy

The ability to understand and share the feelings of another person, showing an awareness and sensitivity to their emotional state.