Suppose the Current Equilibrium Price of Pizza Is $5

question 177

Multiple Choice

Suppose the current equilibrium price of pizza is $5.If the government decides the price of pizza cannot rise above $4, the result of this policy would be

• A)a shortage
• B)a surplus
• C)that the market would remain in equilibrium but with a larger quantity bought and sold than at $5
• D)at the $4 price, the quantity sold would be greater than the quantity bought
• E)a shift of demand to the right

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Definitions:

Resource Dependence

This concept outlines how external resources affect the behavior and strategies of organizations, underlining the dependency on external actors for resources needed to operate.

Open Systems

Organizations or entities that interact with their environment, exchanging resources, information, and influences.

Resource Dependence

Refers to a situation where organizations depend on external resources to operate, affecting their behavior and strategies in the marketplace.

Environmental Uncertainty

The degree of unpredictability in an organization's external environment that affects its decision-making and performance strategies.