Which of the Following Would NOT Indicate That Sellers Are

question 71

Multiple Choice

Which of the following would NOT indicate that sellers are a strong competitive force?

• A) Substitutes exist for their components.
• B) They can supply the component for a cheaper cost than industry makers can produce it.
• C) The buyers of their component are not important customers.
• D) The component that they supply affects buyer product quality.

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Definitions:

Price Ceiling

A government-imposed limit on the price charged for a product, aimed at preventing prices from rising above a certain level.

Equilibrium Wage

The earnings rate at which the workforce offered balances the workforce demanded.

Binding

In economic terms, refers to a price floor or ceiling that is enforced and has an effect on the market, preventing it from reaching equilibrium.

Price Ceiling

A legally established maximum price for a good or service, aimed at preventing prices from rising too high.