A Price Ceiling Means That

question 40

Multiple Choice

A price ceiling means that:

• A)the relevant product is currently available in excess supply
• B)the government is imposing a legal price that is below the equilibrium price
• C)sellers are trying to impose a minimum price to raise their revenues
• D)the government is imposing a legal price that is above the equilibrium price
• E)buyers are attempting to impose a minimum price to minimize their expenditures

---

Definitions:

Drug Test

A drug test is a technical analysis of a biological specimen that's used to detect the presence or absence of specified parent drugs or their metabolites.

Moral Hazard

Moral hazard occurs when there is a lack of incentive to guard against risk where one is protected from its consequences, often after entering into a contract or agreement.

Deductible

The amount paid out of pocket by the policyholder before an insurance company covers a claim.

Full Replacement Value

An insurance term referring to the amount necessary to replace damaged or lost property with new items of like kind and quality without deducting for depreciation.