In Order for a Price Ceiling to "Bind," It

question 36

Multiple Choice

In order for a price ceiling to "bind," it:

• A) must be set above the equilibrium price, and will likely cause a shortage.
• B) must be set below the equilibrium price, and will likely cause a shortage.
• C) must be set above the equilibrium price, and will likely cause a surplus.
• D) must be set below the equilibrium price, and will likely cause a surplus.

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Definitions:

Heart Beat

The rhythmic expansion and contraction of the heart, which indicates the flow of blood through the body.

Traditional

Pertaining to customs, practices, and norms that have been passed down through generations within a specific culture or society.

Difference Principle

A principle formulated by philosopher John Rawls suggesting that societal inequalities are only justified if they benefit the least advantaged members of society.

Macroallocation Principle

A guideline for allocating large-scale resources in a way that addresses the needs of a population, often in contexts like healthcare or economics.