An Example of an Ineffective Price Ceiling Would Be the Government

question 92

Multiple Choice

An example of an ineffective price ceiling would be the government setting the maximum price of wheat at ________ per bushel when the market price is at $5.00 per bushel.

• A) $2.25
• B) $3.00
• C) $4.75
• D) $6.00

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Definitions:

Unilateral Contract

A type of contract in which only one party makes a promise or undertakes a performance in exchange for an act, rather than a promise, from the other party.

Consideration

A legal term referring to something of value exchanged between parties as part of a contract.

Promise

An assertion or commitment to perform a certain action or to ensure an event takes place.

Adequacy Of Consideration

In contract law, the fairness of the compensation or value exchanged in a contractual agreement, ensuring it is both lawful and substantial enough to enforce the contract.