The Presence of Price Controls in a Market Usually Is

question 188

Multiple Choice

The presence of price controls in a market usually is an indication that

• A) an insufficient quantity of a good or service was being produced in that market to meet the public's need.
• B) the usual forces of supply and demand were not able to establish an equilibrium price in that market.
• C) policymakers believed that the price that prevailed in that market in the absence of price controls was unfair to buyers or sellers.
• D) policymakers correctly believed that, in that market, price controls would generate no inequities of their own.

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Definitions:

Horizontal Axis

In graphing, the horizontal axis represents the independent variable and is typically labeled as the x-axis.

Estimated Line of Cost Behavior

A projection or estimation of how costs change in relation to changes in an organization’s level of activity.

High-Low Method

An accounting technique used to estimate variable and fixed costs associated with a business activity by analyzing the highest and lowest levels of activity.

Scatter Diagram

A graphical representation used to show the relationship between two variables, often used in statistics and quality control to identify potential correlations.