A Binding Price Ceiling Will Have the Following Consequences

question 33

Multiple Choice

A binding price ceiling will have the following consequences:

• A) There will be downward pressure on prices until quantity demanded equals quantity supplied.
• B) There will be upward pressure on prices until quantity demanded equals quantity supplied.
• C) There are no consequences to a binding price ceiling.
• D) The quantity demanded will always exceed the quantity supplied.
• E) The quantity demanded will always be smaller than the quantity supplied.

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Definitions:

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A compensation strategy where workers are paid a fixed rate for each unit of production completed, incentivizing efficiency and productivity.

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A measure of output from a production process, indicating the total number of complete units manufactured during a specific period.

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