A Price Control Is

question 166

Multiple Choice

A price control is:

• A)control of the price of a good by the firm that produces it.
• B)a legal restriction on how high or low a price in a market may go.
• C)an upper limit on the quantity of some good that can be bought or sold.
• D)a tax on the sale of a good that controls the market price.

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Definitions:

Resource Demand

The requirement for raw materials, labor, and other inputs needed by businesses to produce goods and services.

Operating Costs

Expenses associated with the day-to-day functioning of a business, such as rent, utilities, and payroll.

Fixed Costs

Expenses that do not change in the short term, regardless of the level of goods or services produced by a business.

BTU

British Thermal Unit, a measure of heat energy equal to the amount required to raise the temperature of one pound of water by one degree Fahrenheit.