The Price Received by Sellers in a Market Will Decrease

question 128

Multiple Choice

The price received by sellers in a market will decrease if the government

• A)imposes a binding price floor in that market.
• B)decreases a binding price ceiling in that market.
• C)decreases a tax on the good sold in that market.
• D)increases a binding price floor in that market.

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Definitions:

Servicing Materials

Supplies and materials used in the maintenance or repair of equipment and machinery to ensure their proper functioning.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the organization.

Variable Cost

Expenses that vary directly with levels of output or production volume.

Spending Variance

The difference between the actual amount spent and the budgeted amount in financial management, often analyzed in cost accounting.