In a market in which the government has set a price ceiling below the equilibrium price:

A. there will be excess supply.
B. the quantity demanded will equal quantity supplied.
C. a black market might develop.
D. quantity supplied will exceed quantity demanded.

Answer: C

Economics

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A) expansionary fiscal policy; low B) contractionary fiscal policy; high C) contractionary monetary policy; low D) expansionary monetary policy; low

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In the absence of trade barriers, patterns of trade are driven by comparative advantage.

a. true b. false

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