Which of These Statements Explains Why Price Ceilings Result in Lost

question 250

Multiple Choice

Which of these statements explains why price ceilings result in lost gains from trade?

• A) Buyers and sellers want to trade, but the threat of fines or jail time prevents them from doing so.
• B) Sellers want to trade, but buyers prefer the lower prices.
• C) Buyers want to trade, but sellers are indifferent at the lower prices.
• D) Neither buyers nor sellers want to trade subject to a price ceiling resulting in lost gains from trade.

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Definitions:

Leader and Follower Interaction

The dynamic relationship between those who guide or influence others and those who are guided or influenced within an organizational or social context.

Substitutes for Leadership

Factors in the workplace environment that diminish the importance of leadership, such as structured tasks or intrinsic motivated teams.

Clarity of Organizational Plans

The clear and understandable presentation of strategies and objectives by an organization.

Availability of Performance Feedback

The extent to which individuals can obtain information about the quality and effectiveness of their work performance.