The Major Drawback of a Price Ceiling Is

question 89

Multiple Choice

The major drawback of a price ceiling is

• A)it causes a surplus.
• B)government regulations of this kind are difficult to enforce.
• C)it causes a shortage.
• D)There is no drawback.

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Definitions:

Random Variable X

A variable whose possible values depend on the outcomes of a probabilistic phenomenon.

Expected Profit

The forecasted amount of profit, calculated as the sum of all possible profits each multiplied by their probabilities of occurrence.

Probability Of

The likelihood or chance of a specific event occurring within a set of possible outcomes.

Major Loss

A significant financial setback or damage, often used in the context of insurance, investments, or business operations.