Question

what is true for a government mandated maximum (2 answers) it creates a shortage it creates a surplus qd is to the left of the equilibrium qs is to the left of the equilibrium with regards to corporations, to what does limited liability refer if a corporation cannot pay its debts, the government insures the investments of the owners. if a corporation fails, investors are able to sue the owners to recover a portion of their money. if a corporation cannot pay its debts, the assets of the owners are protected from creditors. if a corporation fails, the government will purchase the company if it is important to the economy.

Explanation:

1. For a government - mandated maximum (price ceiling), if it is set below the equilibrium price, quantity demanded (Qd) exceeds quantity supplied (Qs), creating a shortage. Also, Qd is to the right of the equilibrium quantity and Qs is to the left of the equilibrium quantity on a supply - demand graph.
2. Limited liability for corporations means that if a corporation cannot pay its debts, the personal assets of the owners are protected from the claims of creditors.

Answer:

1. It creates a shortage

Qs is to the left of the equilibrium

1. If a corporation cannot pay its debts, the assets of the owners are protected from creditors.