If the Government Removes a Binding Price Ceiling from a Market,then

question 129

Multiple Choice

If the government removes a binding price ceiling from a market,then the price received by sellers will

• A)decrease,and the quantity sold in the market will decrease.
• B)decrease,and the quantity sold in the market will increase.
• C)increase,and the quantity sold in the market will decrease.
• D)increase,and the quantity sold in the market will increase.

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Definitions:

Direct Labor

The wages or costs associated with workers who are directly involved in the production of goods or services.

Activity Level

The volume of production or the rate of operations in a business activity.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more precise cost control.

Food And Supplies

These are consumable items bought and used in the operations of businesses, particularly in the restaurant and hospitality industries.