Which of the Following Would Not Result from a Price

question 43

Multiple Choice

Which of the following would not result from a price ceiling (set below equilibrium price) ?

• A) a shortage
• B) fewer exchanges
• C) an increase in supply
• D) nonprice rationing devices

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Definitions:

Straight-Line Depreciation

A strategy for apportioning the cost of an asset consistently throughout its period of use.

Capital Budgeting

The process of evaluating and selecting long-term investments that are consistent with the firm's goal of value maximization.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an equal amount each year.

Capital Budgeting

Capital budgeting involves the evaluation and selection of long-term investments that are expected to generate cash flows and contribute to a company's growth.