If a Government Price Control Succeeds in Affecting Price, It

question 250

Multiple Choice

If a government price control succeeds in affecting price, it can be expected to lead to a corresponding

• A) decrease in the quantity of sales only if the price is forced down.
• B) decrease in the quantity of sales if the price is forced down and an increase in the volume of sales if the price is forced up.
• C) decrease in the quantity of sales whether the price is forced up or down.
• D) increase in the quantity of sales whether the price is forced up or down.

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Definitions:

Benefits to Shareholders

Benefits to shareholders refer to the advantages or gains, such as dividends and increase in share value, that shareholders receive from their investment in a company.

Cost to Corporation

The total expenses incurred by a company in the production of goods or services or in its general operations.

Utility Thinking

An approach that emphasizes making decisions based on the overall happiness or satisfaction derived from the outcomes.

Utilitarianism

A moral theory suggesting that the best action is the one that maximizes overall happiness or pleasure for the greatest number of people.