Suppose That One Knows Two Facts: the Market for Automobile

question 81

Multiple Choice

Suppose that one knows two facts: the market for automobile tires experiences chronic shortages and the government sets the price of automobile tires.One can infer that the

• A) government has established a price ceiling for tires.
• B) quantity of tires supplied exceeds the quantity of tires demanded.
• C) government has established a price floor for tires.
• D) demand for tires exceeds the supply of tires.
• E) government is trying to protect the incomes of tire manufacturers.

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Definitions:

Advertising Dollars

Financial resources allocated by businesses to promote their products or services through various media channels.

National Brands

Products that are branded by the manufacturer and distributed nationally, as opposed to generic or store brands.

Manufacturer

A company or individual that produces finished goods from raw materials by using various tools, equipment, and processes.

CRM

Customer Relationship Management; a strategy and software that businesses use to manage interactions with customers, analyzing data to improve business relationships.