A Lower Limit on the Price of a Good or Service

question 10

Multiple Choice

A lower limit on the price of a good or service is a

• A)Price floor
• B)Price ceiling
• C)Consumer surplus
• D)Producer surplus

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Definitions:

Undisclosed Principal

A party in a contractual agreement whose identity is not revealed to the third party by the agent during the time of the agreement.

Partially Disclosed Principal

A principal whose identity is not known by a third party, although the third party is aware that the agent is making an agreement on behalf of a principal.

Vicariously Liable

A legal principle under which an individual or entity can be held legally responsible for the actions of another, typically in an employer-employee relationship.

Vicarious Liability

Refers to the legal responsibility of one party for the actions of another, typically in employer-employee relationships.