A Price Ceiling That Is Set Below the Equilibrium Price

question 14

Multiple Choice

A price ceiling that is set below the equilibrium price

• A)causes suppliers to raise their prices.
• B)is binding.
• C)is non-binding.
• D)creates a surplus.

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Definitions:

Short-termism

The concentration on short-term projects or objectives for immediate profit at the expense of long-term security.

Resource Constraints

Limits on the availability of factors of production that reduce a company’s ability to produce goods and services.

Institutional Investors

Organizations that invest large amounts of money on behalf of their members, including pension funds, insurance companies, and mutual funds.

Sustainability

A way of doing business that supports the long-term ecological balance of the environment.