If the Current Market Price of Good Z Is Below

question 11

Multiple Choice

If the current market price of good Z is below the equilibrium price of good Z

• A) it must be because the government has imposed a price ceiling in the market for good Z.
• B) there is a shortage of good Z.
• C) there is a surplus of good Z.
• D) demand must necessarily decrease to restore equilibrium.
• E) a and b

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Definitions:

Group Dynamics

The study of the behavior, interactions, and psychological processes that occur within a social group.

Risky Shift

The phenomenon where groups tend to make riskier decisions together than individuals would make on their own.

Polarization

The process or phenomenon through which opinions, attitudes, or behaviors become increasingly extreme or divided.

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.