(Figure: Price Control)Use Figure: Price Control

question 65

Multiple Choice

(Figure: Price Control) Use Figure: Price Control.One effective price ceiling would be the price indicated at point _____,and there would be a _____ equal to the difference between points _____.

• A)b;surplus;f and e
• B)b;shortage;f and e
• C)d;shortage;i and h
• D)d;surplus;e and h

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the company remains the same.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owners' share in the company's assets.

Dividend-to-Earnings Ratio

The dividend-to-earnings ratio indicates what portion of a company's earnings is paid out as dividends to shareholders, reflecting the company's dividend payout policy.