Consumers Generally Try to Obtain

question 228

Multiple Choice

Consumers generally try to obtain:

• A) a point of intersection between indifference curves.
• B) any budget line/indifference curve intersection.
• C) the highest indifference curve.
• D) the lowest indifference curve.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price is charged for a product, meant to protect consumers from conditions that could make commodities prohibitively expensive.

Shortage

A market condition where the demand for a product exceeds its supply at a particular price.

Surplus

is a situation in which the quantity of a good or service available exceeds the quantity demanded at the current price.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers.