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mars1129 [50]
3 years ago
9

A price ceiling means that:

Business
1 answer:
Naddika [18.5K]3 years ago
5 0

Answer:

The most accurate answer in the list is:

government is imposing a legal price that is typically below the equilibrium price. (B.)

Explanation:

when you thing of Price ceiling, it would help to think of the literal ceiling in a house. The ceiling is the highest point anything inside the house can get to, nothing goes beyond the ceiling. Similarly in a market, the price ceiling is the highest possible legal price that a product or service can be sold for, and price ceilings are usually interventions of the government or certain companies (resale price maintenance) to protect consumers against excessive price increase as a result of inflation, or a monopolistic ownership of a product. Price ceiling is of advantage to regular consumers, because it ensures the affordability of these products, however, in the long run, price ceilings may be of disadvantage if the government sets unrealistic prices , especially to the economy, producers and the long-run consumers, because it can result to stock crashes, business failures and even economic crisis. Example of price ceiling can be seen in this scenario:

An imaginary town got featured in a popular magazine as a very good tourist destination spot, as a result more tourists visit the town, and as a result the hotel owners in the town increases the prices of hotel bookings from a Price (P1) to a price (P2), before the featuring of the post in the magazine, this increase in price would have caused a decrease in quantity of demand, but the demand kept increasing because more tourists were available to pay, then the locals contacted the law makers and they brought the price down back to its original rate, or even below that rate (equilibrium) and no hotel owner was allowed to charge above that price. This is Price ceiling, this is of advantage, but in the long run, there may not be hotels to be rented again for those who wish to rent , because demand still keeps rising, above supply, and people will be unwilling to build hotels since it is not a profitable venture, and the hotel owners might even go ahead to reduce the quality of their service, to make up for this reduction in price.

On the other hand, the opposite of price ceiling is Price flooring. Here the government sets a minimum maximum price for which a product or service can be sold, to protect the producers and the economy. An example here is in the setting of the minimum wage, which is the lowest amount a long term worker is to be paid in an economy, it is usually set above the poverty line. Also price flooring is implemented on agricultural products too, to encourage farming in an economy.

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Crossroad chooses to report a financial asset at its fair value. The asset trades in two different markets; however, neither mar
Alex

Answer:$81

Explanation:

The options given are:

a. $76

b. $80

c. $81

d. $82

If the principal market that is, the market that the greatest volume of activity can't be identified, then the most advantageous market would be used to determine the fair value of a financial asset.

The most advantageous market is the market that has the highest net price, after transaction cost has been considered even though the transaction costs is not included into the fair value. Therefore, the second market gives the highest net price of $80 after the consideration of the transaction costs, hence, it should be utilized for fair value purposes.

The fair value amount include the transaction costs, which give $80 + $1 = $81

The fair value amount is $81.

5 0
2 years ago
What is the role of Scientific management in the modern era?​
rjkz [21]

The Scientific management in the modern era is management that analyzes and synthesizes workflows.

The role of  Scientific management in the modern era is improving economic efficiency, especially in the labor productivity. It is a systematic approach to handle management problems. It implies scientific techniques in method of work, recruitment, selection and training of workers.

Scientific management in the modern era is helped in the enhanced production. The employees perform repetitive tasks and are therefore easily controlled by the management.

To know more about management here,

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6 0
1 year ago
You start work at 7:30 am and take a half an hour unpaid lunch at 11:30 AM and then start work at 5:30 PM. How much hours will y
scoray [572]

The number of hours worked for which I will the receive the payment is 7 hours.

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<u>Explanation:</u>

Considering the working hour is from 7:30 am to 8:30 pm

Initial work hours = 7:30 to 11:30am

number of hours = 4

If I start working at 5:30 pm and work till 8:30 pm then the number of hours would be 3

Thus,

total number of hours worked = 4 + 3

                                                  = 7

Therefore, number of hours worked for which I will the receive the payment is 7 hours.

6 0
2 years ago
SOMEONE PLEASE HELP ME ASAP PLEASE!!!!
mojhsa [17]

Answer:B

Explanation:

This is because as one's income increases his aggregate demand also increases as they both have direct relationship with each other.

5 0
3 years ago
Caroline needs information from a coworker in another office about an upcoming salespromotion. What is the best communication ch
horsena [70]

Answer:

E-mail

Explanation:

Text messages, instant messages, and social networking are all generally considered as informal methods of communication which are used to  communicate informal information, such as a the change in a meeting time if schedules have been adjusted during a factory tour.

Secondly such informal means of communication might not be ideal for use to a colleague in another office as the relationship would not be very personal but official.

Since Caroline needs information from a coworker in another office about an upcoming salespromotion, she is better off sending her request via e-mail

6 0
3 years ago
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