Question

a price ceiling is established by government if it feels a price is ___? (keeps it lower)
too high
too low
not under its control

if supply decreases (shifts left), what happens to price? *
stays the same
increases
decreases

what do corporations have? *
limited liability
unlimited liability

Explanation:

1. A price - ceiling is a maximum price set by the government. It is imposed when the government thinks the market - determined price is too high to protect consumers.
2. In the supply - demand model, when supply decreases (shifts left) and demand remains the same, the equilibrium price increases due to the reduced availability of goods or services.
3. Corporations have limited liability. This means that the personal assets of the shareholders are generally not at risk for the debts and obligations of the corporation beyond their investment in the company.

Answer:

1. A. too high
2. B. increases
3. A. limited liability