A Price Ceiling in the Market for Gasoline That Is

question 111

Multiple Choice

A price ceiling in the market for gasoline that is below the equilibrium price will lead to

• A) the quantity demanded of gasoline exceeding the quantity supplied.
• B) an increase in the demand for gasoline.
• C) a decrease in the supply of gasoline.
• D) the quantity supplied of gasoline exceeding the quantity demanded.
• E) no change in the market since the price ceiling is below the equilibrium price.

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Definitions:

Clayton Act

A U.S. legislation enacted in 1914 aimed at promoting competition among businesses and preventing unfair anti-competitive practices.

Sherman Act

A foundational antitrust law in the United States that prohibits monopolistic practices and promotes competition.

Classifying Retail Operations

The process of organizing retail businesses into categories based on factors like product lines, service level, pricing strategy, and target market.

Merchandise Line

Describes how many different types of products a store carries and in what assortment.