A Price Ceiling of $8 Placed on the Market in the Graph

question 114

Multiple Choice

A price ceiling of $8 placed on the market in the graph shown:

• A) is non-binding, and does not affect the market.
• B) is binding, and causes a shortage.
• C) is binding, and causes a surplus.
• D) is non-binding, and does not prevent the market from reaching equilibrium.

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Definitions:

Archival Study

A research method in which the researcher examines existing records or databases to find answers to research questions.

Case Study

A descriptive account of the behavior, past history, and other relevant factors concerning a specific individual.

Survey

A survey is a research method used for collecting data from a predefined group of respondents to gain information and insights on various topics of interest.

Naturalistic Observation

Descriptive method in which observations are made in a natural social setting. Also called field observation.