Keystoning Is

question 169

Multiple Choice

Keystoning is:

• A) the practice of marking up prices by 100 percent
• B) a method used for determining the point of elasticity
• C) a plan for reducing marginal costs
• D) the practice of maintaining variable costs at one-half of total fixed costs
• E) a method of changing consumers' perceptions about price

---

Definitions:

Permanent Income Hypothesis

A theory suggesting that people's consumption decisions are based on their long-term income expectations rather than their current disposable income.

Negative Savings

A situation where spending exceeds income, resulting in a deficit rather than savings.

Price Ceiling

A legally established maximum price that can be charged for a good or service, typically set by government.

Shortage

A situation where the demand for a product or service exceeds the available supply at a particular price.