If the Equilibrium Price of Good X Is $5 and a Price

question 2

Multiple Choice

If the equilibrium price of good X is $5 and a price ceiling is imposed at $4, the result will be a(n) :

• A) accumulation of inventories of unsold gas.
• B) shortage.
• C) surplus.
• D) all of these.

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Definitions:

Investing Activities

Part of a company's cash flow statement that reports the purchase and sale of long-term investments and property, plant, and equipment.

Gain

Gain refers to an increase in economic benefits or inflow of assets that result in an increase in equity, not related to contributions from equity participants.

Office Equipment

Assets like computers, desks, and chairs used in an office to carry out operations, not immediately consumed in the production process.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.