When a Price Ceiling Is Set Below the Equilibrium Price,the

question 30

Multiple Choice

When a price ceiling is set below the equilibrium price,the quantity supplied ________ the quantity demanded and ________ exists.

• A) is less than; a surplus
• B) is less than; a shortage
• C) is greater than; a surplus
• D) is greater than; a shortage
• E) equals; an equilibrium

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Definitions:

Cash Accounts

Cash accounts are financial accounts that keep track of cash transactions within an organization, including receipts, disbursements, and balances.

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Reversing Entry

An entry, made at the beginning of the next accounting period that is the exact opposite of the adjusting entry made in the previous period.

Disposes

Acts of transferring ownership or getting rid of assets, including selling, discarding, or recycling them.