Which of the Following Is an Effect of a Price

question 147

Multiple Choice

Which of the following is an effect of a price ceiling set below the equilibrium price?

• A) Less of the good is produced with the ceiling than would be produced without the ceiling.
• B) The price ceiling has no effect on the market equilibrium.
• C) Consumers can buy more than they can at the equilibrium price because the ceiling price is lower.
• D) None of the above answers is correct.

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Definitions:

Useful Output

The amount of goods or services produced that meet the quality and functionality requirements.

Columnizing

The process of organizing data or information into columns to facilitate analysis or comparison.

Footing

The process of totaling the numerical values in an account or ledger to determine the sum; it's an initial step in the accounting cycle.

Journal

In accounting, a journal is a record where all financial transactions are initially documented in chronological order.