If a Price Ceiling Is Set Below the Equilibrium Price

question 42

Multiple Choice

If a price ceiling is set below the equilibrium price in a market,

• A) rationing will be unnecessary.
• B) surpluses of the commodity will develop.
• C) the quantity demanded will exceed the quantity supplied.
• D) the quantity supplied will exceed the quantity demanded.

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Definitions:

Retailers

Businesses or individuals that sell goods directly to consumers, often purchasing products from manufacturers or wholesalers.

Materials Handing

The process of moving, safeguarding, storing, managing, and overseeing materials and goods during production, storage, distribution, usage, and disposal.

Wholesaling Functions

Activities involved in selling goods in large quantities at lower prices to retailers or other businesses for resale.

Customer Service

The support and assistance provided by a company to its customers, often aimed at enhancing satisfaction, resolving issues, and fostering loyalty.