The Imposition of a Binding Price Ceiling on a Market

question 136

Multiple Choice

The imposition of a binding price ceiling on a market causes quantity demanded to be

• A)​greater than quantity supplied.
• B)​less than quantity supplied.
• C)​equal to quantity supplied.
• D)​Both (a) and (b) are possible.

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Definitions:

Rent

A regular payment made by a tenant to an owner for the use of property or land.

Year 1

Often refers to the first year in a specific context, such as the initial period of a business, investment, or study.

Merchandise Inventory

Refers to products that a company holds in stock with the intention of selling them to customers. It is a current asset on the balance sheet.

Cost of Goods Sold

The direct costs attributable to the production or purchase of the goods sold by a company during a given period.