Producers Will Supply an Inefficiently Low Quality of a Good

question 152

Multiple Choice

Producers will supply an inefficiently low quality of a good if the government imposes:

• A) a price control.
• B) an excise tax.
• C) a binding price floor.
• D) a binding price ceiling.

---

Definitions:

Position Power

The authority and influence a person possesses within an organization due to the role or position they hold.

Legitimate

Conforming to established laws, rules, or standards, often carrying the implication of being justified or official.

Coercive

Relating to or using force or threats to persuade someone to do something or to achieve compliance.

Process

A sequence of measures or procedures executed to accomplish a specific goal.