A Price Ceiling That Is Set Below the Equilibrium Price

question 64

Multiple Choice

A price ceiling that is set below the equilibrium price

• A)causes suppliers to lose money.
• B)creates a shortage.
• C)is non-binding.
• D)creates a surplus.

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Definitions:

Vertical Shift

A transformation that moves a graph up or down the y-axis, changing the equation's output but not its input.

Vertical Line Test

A method to determine if a graph represents a function by checking if any vertical line intersects the graph at more than one point.

Function

In mathematics, a relation between sets that associates every element of a first set to exactly one element of the second set.

Absolute Value

The distance of a number from zero on the number line, without regard to direction, represented as |x|.