A Price Ceiling That Is Set Below the Equilibrium Price

question 14

Multiple Choice

A price ceiling that is set below the equilibrium price

• A)causes suppliers to raise their prices.
• B)is binding.
• C)is non-binding.
• D)creates a surplus.

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Definitions:

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not included in cash equivalents.

Machinery

Industrial or commercial equipment and devices designed for specific tasks, contributing to the production or service capabilities of a business.

Cash Flow

The total amount of money being transferred into and out of a business, measuring liquidity, financial flexibility, and overall financial health.

Operating Activities

Business activities related directly to the production, sale, and delivery of a company’s products and services, regarded as the core activities.