What Best Describes the Impact of a Price Ceiling in a Competitive

question 1

Multiple Choice

What best describes the impact of a price ceiling in a competitive market?

• A) This benefits all consumers because they are able to obtain the good for a lower price.
• B) The quantity supplied will be in excess of the quantity demanded.
• C) It will likely lead to consumers waiting in line for longer periods of time to buy the good.
• D) It will benefit both consumers and producers of the good.

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Definitions:

Foreign Supply

The availability of goods or services from international markets offered for sale in a domestic market.

Tariffs

Tariffs are taxes imposed by a government on imported goods, often used to protect domestic industries from foreign competition.

Domestic Consumers

People or families within a nation who buy products and services for their own consumption.

Domestic Suppliers

Businesses or individuals that produce and provide goods or services within the same country they operate.