Price Ceilings Often Generate

question 288

Multiple Choice

Price ceilings often generate

• A) market clearing prices.
• B) rapid increases in supply to meet the excess demand.
• C) equilibriums that utilize rationing by price.
• D) black markets.

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, representing a share of the corporate profits.

Noncumulative Preferred Stock

A type of preferred stock where missed dividend payments are not accumulated. Investors are not entitled to claim missed dividends in the future.

Par Common Stock

The face value of common stock as stated in the corporate charter; often a nominal amount that has no relation to its market price.

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.