If a Price Ceiling Is Set Below the Equilibrium Price

question 94

Multiple Choice

If a price ceiling is set below the equilibrium price,

• A) quantity demanded will equal quantity supplied.
• B) there will be a surplus.
• C) there will be a shortage.
• D) demand will be less than supply.

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Definitions:

Sales Revenue

Money a company makes from its merchandise sales or services rendered.

Service Charge Expense

Service charge expense refers to fees charged for specific services provided, often recognized as an expense in accounting records.

Accounts Receivables

Sums due to a company from its clients for products or services provided but not yet compensated for.

Factor

A financial intermediary that purchases receivables from businesses, providing them with immediate cash flow.