Which Statement Is True

question 240

Multiple Choice

Which statement is true?

• A)An effective price ceiling is above equilibrium price and causes surpluses.
• B)An effective price ceiling is above equilibrium price and causes shortages.
• C)An effective price ceiling is below equilibrium price and causes surpluses.
• D)An effective price ceiling is below equilibrium price and causes shortages.

---

Definitions:

Risk Consideration

The process of identifying, assessing, and prioritizing uncertainties in investment decisions or business operations.

Shares Outstanding

The total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

Price Per Share

The current market value of a single share of a company’s stock.

Total Market Value

The aggregate valuation of a company, asset, or investment determined by multiplying the current market price by the total outstanding shares.