Which of the Following Statements Is True of Price Ceilings

question 95

Multiple Choice

Which of the following statements is true of price ceilings?

• A)The true cost of the good to consumers is usually greater than the money cost.
• B)All consumers benefit from the lower price.
• C)Nonprice rationing associated with price controls is more efficient than rationing by price.
• D)Shortages associated with price ceilings generally do not last any longer than shortages associated with free markets.

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Definitions:

Desirable Region

A geographical area that offers attractive opportunities for living, working, or investing due to various favorable factors.

Rapid Adjustments

Quick changes or modifications made in response to internal or external factors impacting an organization or system.

Purchasing-supplier Satisfaction Model

A framework for evaluating the relationship and satisfaction levels between buyers and suppliers in procurement.

Fairness

The quality of being impartial, just, and equitable in decisions, treatments, and interactions among individuals or groups.