The Quantity Sold in a Market Will Increase If the Government

question 194

Multiple Choice

The quantity sold in a market will increase if the government

• A)decreases a binding price floor in that market.
• B)increases a binding price ceiling in that market.
• C)decreases a tax on the good sold in that market.
• D)More than one of the above is correct.

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Definitions:

Accounts Payable

The amounts owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Promissory Note Receivable

This is a financial asset representing a written promise by one party to pay a specified sum of money to another party under agreed terms.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan remaining.

Basic Formula

Typically refers to the accounting equation: Assets = Liabilities + Equity.