Which of the Following Is a Likely Outcome of Price

question 141

Multiple Choice

Which of the following is a likely outcome of price controls and quota limits?

• A)prices higher than the market equilibrium price
• B)illegal activity as people invent ways to get around the market constraint
• C)shortages and units of output that must be disposed of
• D)shortages and inefficiency created by buyers searching for units of the good

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Definitions:

Residual Value

The anticipated value of an asset at the conclusion of its lifespan.

Double Diminishing-Balance

An accelerated method of depreciation that calculates expense by doubling the straight-line depreciation rate applied to the declining book value of an asset.

Depreciation Expense

The allocated reduction in the value of a tangible asset over its useful life, recognized as an expense on the income statement.

Residual Value

The projected value that an asset is anticipated to yield when it is disposed of after its lifespan has concluded.