Exhibit 4.8 -In the Exhibit Given Below, Which of the Following Is

question 157

Multiple Choice

Exhibit 4.8

-In the Exhibit given below, which of the following is true at the price ceiling, P?

• A) The excess quantity supplied equals 300 gallons.
• B) The excess quantity demanded equals 300 gallons.
• C) The excess quantity supplied equals 500 gallons.
• D) The excess quantity demanded equals 800 gallons.
• E) The quantity demanded equals quantity supplied.

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Definitions:

Contestable Markets

Markets where the entry and exit of firms are so easy that the market always remains competitive, ensuring that prices remain close to marginal costs.

Barriers To Entry

obstacles that make it difficult for new competitors to enter a market, including high startup costs, access to technology, and stringent regulations.

Competitive

Characterizes a market scenario where multiple sellers strive to attract customers by offering better terms, prices, or products.