Figure 6-1 -Refer to Figure 6-1.The Price Ceiling Shown in Panel (B)

question 202

Multiple Choice

Figure 6-1

-Refer to Figure 6-1.The price ceiling shown in panel (b)

• A)is not binding.
• B)creates a surplus.
• C)creates a shortage.
• D)Both a)and b)are correct.

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Definitions:

Consumer Packaged-goods

Products that are sold in a packaged form, which consumers use up and replace on a frequent basis.

Exclusive Distribution

Strategy in which only selected retailers can sell a manufacturer’s brand.

Retailing

The set of business activities that add value to products and services sold to consumers for their personal or family use; includes products bought at stores, through catalogs, and over the Internet, as well as services like fast-food restaurants, airlines, and hotels.

Daisy Brand

A company known for its dairy products, especially sour cream and cottage cheese, emphasizing quality and natural ingredients.