When a Price Ceiling Is Imposed on a Competitive Market

question 39

Multiple Choice

When a price ceiling is imposed on a competitive market at a level equal to the equilibrium price:

• A)consumer surplus is increased.
• B)producer surplus is increased.
• C)both producer and consumer surplus is reduced.
• D)total surplus remains unchanged.

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Definitions:

Monitor

To regularly observe and check the progress or quality of something over a period of time; can refer to both human activities and technological methods.

Leader

An individual or entity that guides or directs others towards achieving a common goal or objective, often demonstrating qualities such as vision, courage, and integrity.

Quality Standards

Defined criteria to ensure products, services, or processes meet specific requirements and are reliable, safe, and consistent.

Functions of Management

These are the processes that involve planning, organizing, directing, and controlling resources efficiently to achieve organizational goals.