What Is the Difference Between a Price Support and a Price

question 121

Multiple Choice

What is the difference between a price support and a price floor?

• A) A price support is below equilibrium; a price floor is above it.
• B) A price support is above equilibrium; a price floor is below it.
• C) Government buys the excess supply to maintain a price floor, but not a price support.
• D) Government buys the excess supply to maintain a price support, but not for a price floor.
• E) There is no difference between the two.

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Definitions:

Land Improvements

Enhancements to a plot of land such as landscaping, parking lots, and underground utilities that increase the property's value.

Market Value

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Financial Statements

Financial Statements are formal records of the financial activities of a business, person, or other entity, presenting the financial performance and position at a point in time and over a period.

Salvage Value

The projected remaining value of an asset upon reaching the end of its productive lifespan, utilized to compute depreciation.