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2 years ago

In response to a shortage caused by the imposition of a binding price ceiling on a market,

Business

1 answer:

Margaret [11]2 years ago

6 0

In response to a shortage caused by the imposition of a binding price ceiling on a market,

a. price will no longer be the mechanism that rations scarce resources.

b. long lines of buyers may develop.

c. sellers could ration the good or service according to their own personal biases.

A binding price ceiling is when the government or an agency of the government sets the maximum price of a good or service below the equilibrium price.

When price of a good is set below the equilibrium price of the good, the producer surplus would decreases and the consumer surplus would increase. This would lead to an excess of demand over supply. As a result, a shortage would occur. As a result of the shortage, black markets would occur.

To learn more about a price ceiling, please check: brainly.com/question/24312330

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Burka [1]

Answer:

Piper Rose Boutique should accept the special order made by the college

Explanation:

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Note: the Fixed factory overhead is not relevant in taking the decision. Only the variable costs are relevant.

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2 years ago

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Margaret [11]

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Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three

Verizon [17]

Answer:

Total sales is $1,777,000

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