Figure: Supply and Demand 1 Refer to Figure

question 224

Multiple Choice

Figure: Supply and Demand 1 Refer to figure. If, in this figure, the government enacts a price ______ by setting the good's price at $6, it will create a ______.

• A) floor; surplus of 4 units
• B) ceiling; shortage of 10 units
• C) floor; surplus of 10 units
• D) ceiling; shortage of 4 units

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Definitions:

Double-entry Accounting

An accounting system in which every transaction is recorded in at least two accounts, ensuring the accounting equation remains balanced.

Journal Entry

A record in accounting that represents every single transaction made by a company, detailing the financial activities.

Debits

Entries on the left side of a double-entry bookkeeping system that increase asset or expense accounts, or decrease liability, equity, or revenue accounts.

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in an individual's bank account.