If a Binding Price Floor Is in Place and If

question 54

Multiple Choice

If a binding price floor is in place and if the demand curve for the product shifts rightward,one consequence would be

• A)an increase in the amount of excess demand.
• B)a decrease in the amount of excess demand.
• C)an increase in the amount of excess supply.
• D)a decrease in the amount of excess supply.
• E)a decrease in the quantity exchanged.

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Definitions:

Held To Maturity

A classification for investment securities that a company has the positive intent and ability to hold until the specified maturity date.

Annually

Occurring once every year.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.

GAAP Marketable Securities Guidance

Standards and guidelines provided by Generally Accepted Accounting Principles regarding the reporting and valuation of marketable securities.