How Can Sellers Increase Profits When They Face a Price

question 33

Multiple Choice

How can sellers increase profits when they face a price ceiling?

• A) charge a higher price for the good
• B) charge a lower price for the good to undercut rival sellers
• C) produce and sell more output
• D) reduce the quality of the product and provide less customer service

---

Definitions:

Growth

The process of increasing in size, amount, or importance.

Maslow's Hierarchy

A theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Physiological

Relates to the functions and activities of living organisms and their parts.

Production Line Method

A manufacturing process in which parts or components of an end product are made in a sequential order, thus enhancing efficiency and productivity.