If a Price Ceiling Is Imposed and the Quantity Demanded

question 68

Multiple Choice

If a price ceiling is imposed and the quantity demanded exceeds the quantity supplied,which of the following is not likely to occur?

• A)Nonprice rationing
• B)Black markets
• C)Increased production
• D)Quality deterioration

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Definitions:

Entrepreneurial Talent

The skills, creativity, and initiative demonstrated by individuals in starting and managing new businesses, often driving innovation and economic growth.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overheads.

Explicit Costs

Directly incurred expenses in the operation of a business, such as wages, rent, and materials.

Entrepreneurial Talent

The unique set of skills, knowledge, and attitudes possessed by individuals that enable them to create, innovate, and manage businesses effectively.