Which of the Following Is Not a Potential Result of a Price

question 42

Multiple Choice

Which of the following is not a potential result of a price floor?

• A) excess supply
• B) price greater than free-market equilibrium price
• C) Lower quality inputs are used, which increases marginal cost.
• D) all of the above

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Definitions:

Base Period

A specific time period against which conditions in other time periods are compared, often used in index numbers or to measure economic growth.

Estimated Period

A time frame within which certain financial projections or the useful life of an asset is expected to occur.

Vertical Analysis

A financial method that expresses each item in a financial statement as a percentage of a base figure from the same statement, typically used for income statements and balance sheets.

Liquidity

The ability of an asset to be quickly converted into cash without significant loss of value.