When a Price Ceiling Is Set Below the Equilibrium Price,the

question 30

Multiple Choice

When a price ceiling is set below the equilibrium price,the quantity supplied ________ the quantity demanded and ________ exists.

• A) is less than; a surplus
• B) is less than; a shortage
• C) is greater than; a surplus
• D) is greater than; a shortage
• E) equals; an equilibrium

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Definitions:

Guarantor

is an individual or entity that agrees to be responsible for another's debt or performance under a contract, if the original party fails to meet their obligations.

Principal Debtor

The main individual or entity obligated to repay a debt or loan in the terms of a financial agreement.

Principal Debtor

The main individual or entity legally obligated to repay a debt or loan in accordance with the terms of the agreement.

Guarantor

An individual or entity that agrees to be responsible for another's debt or performance under a contract if the original party fails to meet their obligations.