If the Government Set a Price Ceiling at $8

question 49

Multiple Choice

If the government set a price ceiling at $8

• A)there would be a temporary surplus,then prices would fall to equilibrium.
• B)there would be a permanent surplus,at least until the price floor was lifted.
• C)the price would fall back to the equilibrium price.
• D)the price floor would not have any effect on this market.

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Definitions:

Square-root Rule

A mathematical formula used in inventory management to estimate the impact of changing the number of locations on inventory levels.

Stocking Locations

Specific places where inventory is stored and managed, such as warehouses or retail storerooms.

Aggregate Inventory

The total stock of all items held across different locations within a supply chain.

Information Technology

The use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.