Ask Question
BusinessBusiness
13 November, 05:19

If the price ceiling is below $70, quantity supplied and quantity demanded differ. Quantity supplied Quantity demanded Quantity supplied will determine how much oil is purchased.

+2
Answers (1)
  1. 13 November, 08:32
    0
    When a price ceiling is set below $70 (the equilibrium price), the quantity demanded will usually increase over quantity supplied.

    Explanation:

    Note that a price ceiling restraints the price of commodity from rising above a certain level. This is usually done by Governmental to control prices.

    In the case of oil prices assuming the equilibrium price (the price where demand and supply is equal) is $70 and the price ceiling is made below it by a new law, we should expect the quantity demanded to exceed the supply; following the laws of demand and supply.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If the price ceiling is below $70, quantity supplied and quantity demanded differ. Quantity supplied Quantity demanded Quantity supplied ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Using the direct method, Thomas Company allocates Maintenance Department costs based on square footage serviced, and it services the Cutting and Assembly departments.
Answers (1)
The price for predictability is often a) stress and insecurity b) increased self-confidence c) long hours d) long-term boredom
Answers (1)
When the physical count of Rosanna Company inventory had a cost of $4,350 at year end and the unadjusted balance in Inventory was $4,500, Rosanna will have to make the following entry: a. Cost of Goods Sold150 Inventory150 b.
Answers (1)
What factors might be considered when creating a tax that is considered fair by most people in a society? explain?
Answers (1)
Which best describes a workplace for someone who works in Health, Safety, and Environmental Assurance?
Answers (2)
New Questions in Business
The Foreign Corrupt Practices Act (FCPA) makes it illegal for US citizens to bribe high ranking foreign officials to get new business. A violation can have a criminal penalty that involves up to five years in prison.
Answers (1)
In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 240 units at $10 on January 1, (2) 480 units at $11 on January 8, and (3) 780 units at $12 on January 29.
Answers (1)
On March 1, 2021, Bearcat lends an employee $20,000. The employee signs a note requiring principal and interest at 9% to be paid on February 28, 2022. Record the adjusting entry for interest at its year-end of December 31.
Answers (1)
The rate of increase in saving is less than the rate of increase in income A. true B. false
Answers (1)
An ideal marketing penetration strategy would be to offer cash backs and discounts on products to customers a. True b. False
Answers (2)
Home » Business » If the price ceiling is below $70, quantity supplied and quantity demanded differ. Quantity supplied Quantity demanded Quantity supplied will determine how much oil is purchased.
Sign Up Forgot Password?