If the Equilibrium Price for Some Product Is $1000,a Price

question 66

Multiple Choice

If the equilibrium price for some product is $1000,a price ceiling of $800 will result in

• A)the same general effects as a price ceiling of $1200.
• B)the same general effects as a price floor of $1200.
• C)the same general effects as a price ceiling of $600.
• D)massive surpluses of the good.
• E)no effects because the price ceiling is not binding at that price.

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Definitions:

Internal Control

Processes designed to ensure the reliability of financial reporting, effectiveness and efficiency of operations, and compliance with laws and regulations.

Income Statement

An income statement is a financial statement that shows a company's revenues and expenses over a specific period of time, ultimately revealing the company’s profit or loss.

Balance Sheet

A report detailing a corporation's assets, liabilities, and shareholders' equity at a certain moment.

Bank Reconciliation

The process of comparing and matching figures from the accounting records against those shown on a bank statement to ensure accuracy.