Whenever There Is a Binding Price Ceiling (A Price Control

question 212

Multiple Choice

Whenever there is a binding price ceiling (a price control that sets the price below the market equilibrium price) that changes the equilibrium quantity,all of the below occur except which option?

• A) Demand increases.
• B) There is a loss of social surplus.
• C) Consumer surplus in the aggregate increases and producer surplus in the aggregate decreases.
• D) Some consumers are made better off (they can purchase the good or service at a lower price) while other potential consumers are made worse off (queued out of the market).

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Definitions:

Important Information

Refers to data or facts that have significant value or implications for decision-making or understanding a subject.

Concert

A live performance, typically of music, before an audience.

Objective and Task Budgeting

A method of budgeting where funding is allocated based on the identification of specific objectives and the tasks required to achieve them.

Competitive Parity Budgeting

Allocating funds to promotion by matching the competitor's absolute level of spending or the proportion per point of market share. Also called matching competitors or share of market.