Which of the Following Is a Characteristic of a Market

question 25

Multiple Choice

Which of the following is a characteristic of a market where a price floor is in place?

• A)The market quantity demanded exceeds the market quantity supplied.
• B)Fewer regulations are needed since the government sets the price.
• C)Fewer units are purchased than would be the case without the price floor.
• D)A smaller number of sellers than in markets without price floors.

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Definitions:

Asset Sold

The process of transferring ownership of a business resource, which could be tangible or intangible, from one entity to another, usually in exchange for cash or its equivalent.

Unrealized Gain

An increase in the value of an asset or investment that has not yet been sold and thus, the gain has not been realized as actual profit.

Consolidated Financial Statements

Financial statements that show the financial results and position of a parent company and its subsidiaries as if they were a single entity.

Wholly Owned Subsidiary

A firm entirely possessed by another corporation, known as the parent company, holding all of its share capital.