Use the Table Below to Answer the Following Questions

question 104

Multiple Choice

Use the table below to answer the following questions.
Table 6.1.1

-Refer to Table 6.1.1,which gives the demand schedule and the supply schedule for the apartment market in Anytown,Alberta.If a rent ceiling of $300 is imposed in the apartment market,then

• A)there is a shortage of 40 apartments.
• B)there is a surplus of 40 apartments.
• C)the supply of apartments will increase.
• D)the supply of apartments will decrease.
• E)the quantity of apartments supplied is 60 units.

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Definitions:

Capital Budgeting

Analysis techniques concerned with justifying money spent on long-term assets and projects.

Profitability

A measure of the efficiency of a company or investment in generating profit or return compared to its revenue or investment size.

Capital Budgeting Process

The procedure companies use to evaluate and select long-term investments that are aligned with their goal of shareholder wealth maximization.

Incremental Cash Flows

The additional cash flow a business receives from taking on a new project, used to analyze the profitability of that project.