Which of the Following Is True

question 72

Multiple Choice

Which of the following is true?

• A)​It is possible to eliminate a surplus by raising a price floor sufficiently.
• B)​It is possible to create a surplus by raising a price ceiling sufficiently.
• C)​It is possible to eliminate a shortage by raising a price ceiling sufficiently.
• D)​It is possible to create a shortage by lowering a price floor sufficiently.

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Definitions:

Indirect Materials

Indirect materials are supplies used in the production process that do not become an integral part of the finished product and are not directly traceable to specific goods or services produced.

Raw Materials

The basic materials and inputs used in the production process to manufacture finished goods.

Work in Process

Inventory that includes items being manufactured but not yet completed, representing a stage between raw materials and finished goods.

Raw Materials

are basic substances or components used in the manufacturing process to create finished goods.