A Price Restriction That Tells Suppliers the Minimum Price They

question 119

Multiple Choice

A price restriction that tells suppliers the minimum price they can sell their goods for is also known as

• A) a price ceiling.
• B) a quota.
• C) a price floor.
• D) deadweight loss.

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Definitions:

Future Date

A specified day in the future on which an event is planned or expected to occur.

Negotiable Instrument

A document that promises to pay a certain sum of money, which can be demanded at any time or on a fixed date, and allows the beneficiary to transfer this right to someone else.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing immediate needs.

Payment

The transfer of money, goods, or services as compensation or fulfillment of an obligation.