Demand and Supply Schedules for Chocolate Bars

question 47

Multiple Choice

Demand and Supply Schedules for Chocolate Bars
TABLE 5-1
-Refer to Table 5-1.Suppose that as a public-health measure the government wants to reduce the number of chocolate bars that children consume.To achieve this outcome the government could implement which of the following policies?

• A)Impose an equilibrium price of $1.80.
• B)Impose a price floor of $1.80.
• C)Impose a price ceiling of $1.80.
• D)Impose an equilibrium price of $1.20.
• E)Impose a price ceiling of $2.00.

---

Definitions:

Special Order Decisions

These are considerations made by businesses to accept or decline an order from a customer that is not part of the company's standard line of production or services, often involving unique pricing or costs.

Short-Term Pricing

The strategy or approach to setting prices for goods or services with a focus on immediate or near-future objectives.

Absorption Costing

An accounting method that includes all manufacturing costs, both direct and indirect, in the cost of a product, thereby fully absorbing overhead.

Profit

The financial gain achieved when the revenue from sales or services exceeds the costs and expenses incurred in providing those sales or services.