Consider a Market with a Price Ceiling

question 40

Multiple Choice

Consider a market with a price ceiling.If the price ceiling is lowered which of the following would happen?

• A)The consumer surplus would increase,the producer surplus would decrease and the dead weight loss would decrease
• B)The consumer surplus would increase,the producer surplus would decrease and the dead weight loss would increase
• C)The consumer surplus,the producer surplus and the dead weight loss would all decrease
• D)The consumer surplus,the producer surplus and the dead weight loss would all increase
• E)The consumer surplus would decrease,the producer surplus would increase and the dead weight loss would increase

---

Definitions:

Cash Available

Refers to funds that a company or individual can immediately use or access for payments, investments, or other financial needs.

Disbursements

Payments made by a business, often involving cash outflows for operating expenses, acquisitions, or investments.

Ending Cash Balance

The amount of cash a company has at the end of a given period, reflecting all cash inflows and outflows during that period.

Cash Disbursements

Outflows of cash for various purposes, including operating expenses, asset purchases, and other business activities.