A Price Floor That Sets the Price of a Good

question 117

Multiple Choice

A price floor that sets the price of a good above market equilibrium will cause

• A) a decrease in quantity demanded of the good.
• B) an increase in quantity supplied of the good.
• C) a surplus of the good.
• D) all of the above.

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Definitions:

Investment Method

A technique for recognizing the investor's share of investee profits and adjusting the carrying amount of the investment accordingly.

Accounting

The systematic process of recording, summarizing, and reporting the financial transactions and positions of a company.

Available-for-sale

This is a classification for investments that a company plans to sell but are not actively traded, with changes in value reported in other comprehensive income.

Unrealized Gain

A profit that has occurred on paper due to an investment's increased value but has not yet been realized through a sale.