When the Government Imposes an Effective Price Ceiling on a Monopolist

question 13

Multiple Choice

When the government imposes an effective price ceiling on a monopolist, what will happen for sure in the short run?

• A)The dollar price will increase.
• B)The dollar price will fall.
• C)There will be a shortage of the product.
• D)There will be a surplus of the product.

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Definitions:

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EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's overall financial performance.

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Contracts between a borrower and a lender outlining the terms and conditions of a loan.