In General, Price Controls Have a _______ Effect in the _______

question 35

Multiple Choice

In general, price controls have a _______ effect in the _______ than in the _______ because demand and supply become _______ elastic over time.

• A) larger; long run; short run; more
• B) larger; short run; long run; more
• C) smaller; long run; short run; less
• D) smaller; short run; long run; less

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Definitions:

Cash Inflows

Cash Inflows are the money or cash received by a business from its various activities, including sales, investments, financing, etc.

Profitability Index

A capital budgeting tool that measures the ratio of the present value of future cash flows generated by an investment to the initial investment cost, used to assess the profitability.

Required Rate Of Return

The minimum expected return on an investment necessary for an investor to consider it worthwhile.

Required Return

The expected yield that an investor anticipates receiving on an investment, taking into account the risk associated with it.