In a Market in Which the Government Has Set a Price

question 179

Multiple Choice

In a market in which the government has set a price ceiling below the equilibrium price:

• A)the quantity demanded will equal quantity supplied.
• B)there will be excess supply.
• C)a black market might develop.
• D)quantity supplied will exceed quantity demanded.

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Definitions:

Revenue Management

Is the practice of strategically controlling inventory and pricing to maximize revenue, commonly used in industries like hotels, airlines, and hospitality.

Available Supply

The quantity of goods or materials in stock that is ready to be sold or distributed.

Maximize Profits

Maximizing profits is the strategic goal of increasing a company's earnings to its highest possible level by optimizing revenue streams and reducing costs.

Differential Pricing

The strategy of selling the same product to different customers at different prices.