If the Price Ceiling Is Set Above the Equilibrium Price

question 35

Multiple Choice

If the price ceiling is set above the equilibrium price,

• A) quantity demanded will equal quantity supplied.
• B) there will be a surplus.
• C) there will be a shortage.
• D) demand will be less than supply.

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Definitions:

Sixteenth Century

The period from 1501 to 1600, marked by significant events such as the Renaissance, the Reformation, and the Age of Exploration.

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The process of creating land from sea, lakes, or swamps in the Netherlands, involving the use of dikes and drainage canals.

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