Why Is It Often Difficult to Remove a Binding Price

question 171

Multiple Choice

Why is it often difficult to remove a binding price floor after it exists?

• A) in general,because consumers benefit from the lower prices and would lobby their elected officials to keep the price control
• B) in general,because consumers benefit from higher quality products and would lobby their elected officials to keep the price control
• C) in general,because consumers benefit from larger products and would lobby their elected officials to keep the price control
• D) in general,because sellers benefit from higher prices and would lobby their elected officials to keep the price control
• E) in general,because it has little effect on the market price and people forget about it

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Definitions:

Worksheet

A worksheet in accounting is a document used for planning adjustments and reconciling accounts, aiding in the preparation of financial statements.

Income Statement

An Income Statement is a financial statement that shows a company's revenues and expenses over a specific period of time, culminating in net profit or loss.

Balance Sheet

An outline that captures a company's assets, debts, and the equity of its shareholders at a distinct point, illustrating the company's financial standing.

Worksheet

An informal document used by accountants to prepare adjusting entries and to reconcile accounts in the preparation of financial statements.