A Maximum Legal Price Is Called

question 89

Multiple Choice

A maximum legal price is called:

• A) a price support.
• B) a price floor.
• C) a price ceiling.
• D) the parity price.

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Definitions:

Consumer Preferences

Describes the subjective tastes and preferences of individual consumers, influencing their purchasing decisions.

Marginal Benefit

The additional satisfaction or value a consumer gains from consuming one more unit of a good or service.

Purely Competitive

Describes a market structure where many small firms compete against each other, with no single entity able to control the market price.

Marginal Cost

The cost of producing one additional unit of a good, capturing how production costs change with the level of output.