A Price Ceiling That Is Set Below the Equilibrium Price

question 64

Multiple Choice

A price ceiling that is set below the equilibrium price

• A)causes suppliers to lose money.
• B)creates a shortage.
• C)is non-binding.
• D)creates a surplus.

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Definitions:

Productivity Growth

An increase in the efficiency of production, often measured by the ratio of output to input over a specified period of time.

Economies Of Scale

The cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale.

Skilled Labour

Labor that requires specialized training, knowledge, and abilities, often distinguished from unskilled or semiskilled labor in the context of workforce and employment.

Training Legislation

Training legislation refers to laws and regulations that govern the provision, quality, and accessibility of training programs and initiatives to ensure protection and fair treatment for learners.