When the Government Sets a Maximum Price That Can Be

question 112

Multiple Choice

When the government sets a maximum price that can be charged for a good or service, it creates

• A) a price support.
• B) a price floor.
• C) a white market.
• D) a price ceiling.

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Definitions:

Date of Payment

The specific day on which a payment is due or processed.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit.

Average Collection Period

The average number of days it takes for a business to collect its receivables from customers.

Quick Assets

Assets that can be converted into cash quickly without significantly affecting their value, such as cash, marketable securities, and accounts receivable.