The Likely Result of a Price Floor Is a _____

question 96

Multiple Choice

The likely result of a price floor is a _____ of the good at a price _____ the equilibrium price.

• A) surplus; above
• B) shortage; below
• C) surplus; below
• D) shortage; above

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Definitions:

Date of Record

The specific date on which a company determines the eligible shareholders for receiving dividends or other corporate distributions.

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, increasing the total number of shares owned by shareholders.

Par Value

Refers to the nominal or face value of a bond, stock, or coupon as stated by the issuer.

Prior Period Adjustments

Corrections of errors in financial statements of previous periods or adjustments due to changes in accounting policies, applied retrospectively.