Any Sweepstakes That Requires a Purchase by an Entrant Is

question 43

Multiple Choice

Any sweepstakes that requires a purchase by an entrant is illegal and considered:

• A)a lottery.
• B)an added-value transaction.
• C)a transactional relationship.
• D)a "rub off."
• E)a contest.

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Definitions:

Price Floor

A government or group-imposed minimum price set above the equilibrium price, ensuring sellers cannot charge less than this amount.

Market-clearing Price

The price at which the quantity supplied of a product equals the quantity demanded, effectively clearing the market of any surplus or shortage.

Pumpkins

A type of squash plant known for its round, orange fruit used primarily for decoration, cooking, and as a symbol of Halloween.

Price Ceilings

A maximum price legally allowed for a product or service to safeguard the interests of consumers.