Suppose the Government Imposes an Administered Price in the Market

question 20

Multiple Choice

Suppose the government imposes an administered price in the market for gold,which results in an excess supply.In this situation,

• A)the market is in disequilibrium.
• B)no gold will be exchanged.
• C)there are unsuccessful buyers.
• D)the market is in equilibrium.
• E)the gold market has not reached the point of saturation.

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Definitions:

Cash Provided

Funds that have been generated or received by a company, often referring to cash flow from operating activities.

Dividends Paid

The portion of a company's earnings that is distributed to shareholders, usually in the form of cash or additional shares.

Cash Payments

Transactions that involve the transfer of cash from one entity to another.

Inventory Increase

An rise in the quantity or value of goods held by a company for the purpose of sale in the normal course of business.