Table 4-1 -Refer to the Table 4-1.If the Price Were $3,what Would

question 223

Multiple Choice

Table 4-1

-Refer to the Table 4-1.If the price were $3,what would happen

• A)A shortage of 100 units would exist and the price would tend to fall.
• B)A surplus of 50 units would exist and the price would tend to rise.
• C)A surplus of 25 units would exist and the price would tend to fall.
• D)A shortage of 100 units would exist and the price would tend to rise.

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Definitions:

Diminishing-Balance

A method of depreciation that accelerates the rate at which an asset loses value, applying a constant rate to the declining book value each period.

Constant Percentage

A method or rate that does not change over time, often used in calculations of growth, discount, or interest rates.

Units-of-Production Method

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces or hours it operates.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.