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A Price Floor Will Cause a Larger Surplus When Demand

question 129

Essay

A price floor will cause a larger surplus when demand is ________ and supply is _.
A.elastic; inelastic
B.inelastic; inelastic
C.elastic; elastic
D.perfectly inelastic; elastic


Definitions:

Operating Activities

Financial transactions and events related to the core business functions, including revenue and expense activities.

Indirect Method

A cash flow statement presentation method that adjusts net income for the changes in balance sheet accounts to calculate cash flow from operating activities.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, often referred to as the bottom line.

Statement of Cash Flows

A financial report showing the cash inflows and outflows from operating, investing, and financing activities of a company over a period.

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