Governments Often Get Involved in Creating a Market Equilibrium by Setting

question 200

True/False

Governments often get involved in creating a market equilibrium by setting a maximum price that is less than the equilibrium price, resulting in a permanent excess demand for the products.

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Definitions:

Ending Balance

The final amount in an account at the end of a reporting period, after all additions and subtractions have been accounted for.

Revenue Account

An account that records the income earned by a company from its business activities.

Debit

A bookkeeping record that raises the value of an asset or expense, or reduces the value of a liability or equity.

Expense Account

An account used to record expenditures incurred by a company, relating to its operational activities.