If Prices Are Not Allowed to Rise Because of a Price

question 255

Multiple Choice

If prices are not allowed to rise because of a price ceiling, then:

• A) suppliers have an incentive to provide a high level of customer service.
• B) suppliers will compensate for the lower price by increasing the quality of their goods.
• C) prices do not provide the correct information about consumers' valuation of the good.
• D) a shortage will develop, but only temporarily until markets adjust to the lower prices.

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Definitions:

Asset

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Life Estimate

A projection or approximation of the duration or longevity of an entity, product, or component.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.

Investment Value

The worth of an asset or company to a particular investor, considering individual investment requirements and expectations.