Starting from an Equilibrium Position

question 7

Multiple Choice

Starting from an equilibrium position,

• A)​the imposition of a price floor below the equilibrium price will increase the quantity demanded.
• B)​the imposition of a price floor below the equilibrium price will decrease the quantity exchanged.
• C)​the imposition of a price floor above the equilibrium price will decrease the quantity demanded.
• D)​the imposition of a price floor above the equilibrium price will increase the quantity exchanged.

---

Definitions:

Land Sale

A transaction involving the conveyance of ownership in land from one party to another, often recorded as a capital transaction in financial statements.

Operating Income

This is the profit realized from a business's ongoing operations, calculated as the difference between operating revenues and operating expenses.

Land Account

A type of asset account on the balance sheet representing the cost of land owned by a company.