If the Equilibrium Price of Widgets Is $22, and Then

question 98

Multiple Choice

If the equilibrium price of widgets is $22, and then a price ceiling of $24 is imposed by the government, as a result,

• A)​there will be no effect on the widget market.
• B)​there will be a shortage of widgets.
• C)​there will be a surplus of widgets.
• D)​the price of widgets will increase.

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Definitions:

Ethical Implications

The moral impacts or consequences that an action or policy may have, especially in regard to decisions made within professional or organizational contexts.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including the identification of the target market, competition, and consumer preferences.

Cultural Factors

Elements of culture such as beliefs, values, attitudes, and norms that influence consumer behavior and purchasing decisions.

Technological Factors

Elements that consider the impact of new and existing technologies on an organization or industry.