The Major Drawback of a Price Ceiling Is

question 89

Multiple Choice

The major drawback of a price ceiling is

• A)it causes a surplus.
• B)government regulations of this kind are difficult to enforce.
• C)it causes a shortage.
• D)There is no drawback.

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Definitions:

Gross Cost

The total cost incurred before any deductions, such as discounts or rebates, are applied, representing the full price of a product or service.

Commission

A fee paid for services, typically a percentage of the total cost.

Principals

The original amount of money loaned or invested, excluding any interest or earnings.

Total Commission

The entirety of fees or compensation a salesperson earns from completing sales.