When the Government Controls the Price of a Product, Causing

question 99

Multiple Choice

When the government controls the price of a product, causing the market price to be below the free market equilibrium price,

• A) some consumers gain from the price controls and other consumers lose.
• B) all producers gain from the price controls.
• C) both producers and consumers gain.
• D) all consumers are better off.

---

Definitions:

Winding Up

The process of dissolving a business by disposing of its assets, paying off creditors, and distributing any remaining assets to shareholders or owners.

Chartered Bank

A financial institution that has been established and operates under a charter granted by the government, offering a range of banking services.

Partnership

A form of business legally organized by multiple individuals who participate in managing the enterprise and dividing its earnings.

Bank of Nova Scotia

A multinational Canadian banking and financial services company also known as Scotiabank.