Figure 4-17 Refer to Figure 4-17

question 145

Multiple Choice

Figure 4-17 Refer to Figure 4-17. Suppose a price ceiling of $4.50 is imposed. As a result,

• A) there is a shortage of 15 units of the good.
• B) the demand curve will shift to the left so as to now pass through the point (Q = 35, P = $4.50).
• C) the situation is very much like the one created by a binding minimum wage.
• D) the quantity of the good that is bought and sold is the same as it would have been had a price floor of $7.50 been imposed.

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Definitions:

Petty Cash Fund

A little sum of money maintained readily available for covering small costs instantly.

General Journal Entry

A basic accounting record where financial transactions are initially recorded.

Replenishment

Replenishment involves the process of restocking goods or materials in inventory to maintain adequate levels to meet consumer demand or operational needs.

Bank Reconciliation

Bank reconciliation is the process of comparing and matching figures from the accounting records against those shown on a bank statement to ensure they are in agreement.