Which of the Following Is an Example of a Price

question 52

Multiple Choice

Which of the following is an example of a price floor?

• A) a law passed in a city to lower apartment rents by setting the maximum price that can be charged for rent
• B) an equilibrium price
• C) a minimum wage law
• D) a law setting the highest price that can legally be charged for a gallon of gasoline.
• E) None of the above answers give examples of a price floor.

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Definitions:

Sales Dollars

The total monetary amount generated from selling goods or services.

Asset Management

The systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner.

Depreciation Expense

Depreciation Expense represents the systematic allocation of the cost of a tangible asset over its useful life, reflecting its wear and tear or obsolescence.

Contra-Asset

A contra-asset account is an asset account where the balance of the account is either zero or a credit balance, used to reduce the value of the related asset, such as accumulated depreciation for fixed assets.