In a Market Economy, Which of the Following Will Most

question 144

Multiple Choice

In a market economy, which of the following will most likely cause a prolonged milk shortage?

• A) an increase in the demand for milk
• B) an increase in the supply of milk
• C) imposition of a price floor above the equilibrium price of milk
• D) imposition of a price ceiling below the equilibrium price of milk

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Definitions:

Personal Selling

A direct marketing approach where individual salespeople reach out to potential customers through face-to-face meetings, calls, or personalized messages.

Trade Sales Promotion

Marketing activities and incentives aimed at intermediaries such as wholesalers and retailers to encourage the stocking and promotion of a company’s products.

Retailers

Businesses that sell goods or services to consumers for personal or household use, acting as a final link between producers and consumers.

Allowance

A fixed amount of money given regularly, typically to a child by their parents, for personal spending or to cover specific personal expenses.