Which of the Following Is True for a Price Ceiling

question 35

Multiple Choice

Which of the following is true for a price ceiling?

• A) A price ceiling is a limit below which it is illegal to set a price.
• B) A price ceiling usually leads to a shortage in a market.
• C) A price ceiling is usually set above the equilibrium price.
• D) A price ceiling is usually set for goods like alcohol to curb excess consumption.

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Definitions:

Franchise Partnership

A business arrangement where a franchisee partners up with a franchisor to open and operate a location of an established brand.

Area Of Dominant Influence (ADI)

A geographical area where the population can receive the same (or similar) television and radio station offerings, indicating a dominant media market region.

Franchising

A method of doing business wherein a franchisor licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a recurring payment, and often a percentage of the gross sales or profits.

Demographic Profile

A statistical representation of the characteristics of a population, including age, gender, income, and education.