If a Price Ceiling Is a Binding Constraint on the Market,what

question 175

Multiple Choice

If a price ceiling is a binding constraint on the market,what do we know

• A)The equilibrium price must be above the price ceiling.
• B)Sellers will benefit from this market.
• C)The forces of supply and demand must be in equilibrium.
• D)There may be a surplus in the market.

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Definitions:

Margin

The difference between the selling price of a product or service and its cost, expressed as a percentage of the selling price.

Turnover

A measure of a company's sales or revenues relative to the average value of its assets, inventory, or employees.

Return on Investment

A measure of the financial gain or loss on an investment relative to the amount of money invested.

Operating Assets

Assets used by an organization in its day-to-day operations to generate revenue, excluding investments and inventory.