Price Ceilings That Are Below the Equilibrium Price Result In

question 59

Multiple Choice

Price ceilings that are below the equilibrium price result in:

• A)increased total economic surplus.
• B)shortages.
• C)surpluses.
• D)the same amount of total economic surplus with a reallocation from producers to consumers.

---

Definitions:

FIFO Costing Assumption

A method used in accounting that assumes the first items of inventory purchased are the first ones sold.

Specific Identification Method

The specific identification method is an approach to inventory valuation that tracks the cost of individual items or groups of similar items.

Inventory Costing

The method of accounting that assigns costs to inventory, typically involving the calculation of costs of goods sold and ending inventory values.

High-Unit Cost

The condition of having a high cost per unit of product, often due to expensive inputs or inefficient production.