If the Government Imposes a Price Ceiling, Then

question 37

Multiple Choice

If the government imposes a price ceiling, then:

• A) producers must charge the ceiling price.
• B) the price offered by producers must be at or above the ceiling price.
• C) the price offered by producers must be at or below the ceiling price.
• D) producers would be inclined to increase the quantity supplied.
• E) the market supply curve will shift to the right.

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Definitions:

Cost Allocation

The process of identifying, accumulating, and assigning costs to cost objects, such as products, services, or departments.