A Price Ceiling Is

question 163

Multiple Choice

A price ceiling is:

• A)a maximum price sellers are allowed to charge for a good or service.
• B)the difference between the quantity supplied and quantity demanded.
• C)a minimum price buyers are required to pay for a good or service.
• D)the deadweight loss caused by an inefficiently low quantity.

---

Definitions:

Cash Deficiency

A situation where the cash available is not sufficient to cover the expenses or liabilities; often results in the need for additional financing or budget adjustments.

Production Budget

A plan that outlines the number of units that must be produced within a period to meet the expected sales and inventory levels.

Units Produced

Units produced quantify the number of complete units manufactured or produced during a specific time frame in a production process.

Budget

An accounting device used to plan and control resources of operational departments and divisions.