Which of the Following Is True of Price Ceilings

question 23

Multiple Choice

Which of the following is true of price ceilings?

• A)With a non- binding ceiling price an excess demand for the product will develop.
• B)With a binding ceiling price a surplus of the commodity will develop.
• C)Firms must charge the price established as a price ceiling.
• D)If the ceiling price is set above the free- market equilibrium price it will have no effect on the market.
• E)A ceiling price below the free- market equilibrium price is not binding.

Recognize molecules that do not adhere to the octet rule and explain the exceptions.

Determine the correct molecular shape using the valence shell electron pair repulsion (VSEPR) theory.

Associate molecular formulas with the correct chemical names of compounds.

Distinguish between linear, branched, and cyclic organic molecules.

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Definitions:

Socialist

refers to a political and economic theory of social organization which advocates for the means of production, distribution, and exchange to be owned or regulated by the community as a whole.

Price Mechanism

The way in which prices rise and fall to balance supply and demand, allocating resources efficiently in a market economy.

Competing Firms

are companies operating in the same industry or market that offer similar products or services to consumers.

Government Regulate

The activities undertaken by government authorities to control or oversee specific industries, practices, or market activities usually to ensure public welfare or fair market competition.