Cassandra Has Started a Giftware Distribution Company in Time for the Trade

question 24

Multiple Choice

Cassandra has started a giftware distribution company in time for the trade show season.Cassandra decided to rent building space for storing product.What is Cassandra's main reason for renting the facility rather than buying a building?

• A) to avoid a large cash outlay
• B) to have freedom in modifying the building
• C) to avoid the interest payments on a mortgage
• D) to avoid lawsuits owners of property can face

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Definitions:

Price Ceiling

A maximum limit set by the government on the price of a good or service, intended to protect consumers.

Market Price

The price at which an asset or service is currently being traded in a given market.

Supply Curve

A graphical representation of the relationship between the price of a good or service and the amount that suppliers are willing to offer for sale, typically upward sloping because higher prices incentivize more production.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price during a specific time period.