Based on the Following Diagram If There Were a $1

question 15

Multiple Choice

Based on the following diagram if there were a $1.50 price ceiling:

• A) the quantity demanded would be 65.
• B) the quantity demanded would be 80.
• C) there would be a shortage of 30.
• D) there would be a surplus of 30.

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Definitions:

Direct Method

A cash flow statement preparation method that lists specific cash inflows and outflows relating directly to operations.

Inventory Increase

Occurs when the ending inventory is greater than the beginning inventory, reflecting a net addition to stock through purchases or production.

Accounts Payable

Short-term liabilities of a business that are due to be paid to creditors within a specified period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor.