The Benefit of a Price Ceiling to ________ Is ________

question 148

Multiple Choice

The benefit of a price ceiling to ________ is ________.

• A) producers; the selling price of the product is above the equilibrium price
• B) producers; the ceiling creates excess demand
• C) consumers; the selling price of the product is below the equilibrium price
• D) consumers; the ceiling creates excess supply

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Definitions:

Cash Outflow

Money that is spent or transferred out of a business, reducing its cash balance.

Cash Equivalents

Short-term, highly liquid investments such as Treasury bills, commercial paper, and money market funds, that are made solely for the purpose of generating a return on temporarily idle funds.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.