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:

Manufacturing Defect

A flaw in the production of a product that causes it to deviate from its intended design or specifications.

Design Defect

A flaw in the intentional design of a product that results in it being unsafe for its intended or reasonably foreseeable use.

Inadequate Warning

Refers to insufficient or unclear information provided about the potential risks or dangers associated with a product or activity.

Statute Of Repose

Basically, a statute of limitations that is not dependent on the happening of a cause of action. Statutes of repose generally begin to run at an earlier date and run for a longer period of time than statutes of limitations.