A Price Ceiling Set Below the Equilibrium Price Will

question 71

Multiple Choice

A price ceiling set below the equilibrium price will

• A) clear the market for the good.
• B) result in a shortage of the good.
• C) result in a surplus of the good.
• D) induce new firms to enter the industry.

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Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, aimed at harmonizing laws across the states.

Time Instrument

A legal document that promises payment of a specified amount of money at a set time or times in the future.

Overdue

A term describing a payment not made by its due date or an action not completed by the scheduled time.

Installment Payment

A method of payment where the total cost is divided into multiple scheduled payments over a period.