A Price Above the Equilibrium Price Will

question 119

Multiple Choice

A price above the equilibrium price will:

• A) result in quantity supplied being less than quantity demanded.
• B) result in a shortage.
• C) create pressure for price to fall.
• D) tend to rise over time.

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Definitions:

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow over a similar term the funds necessary to purchase or lease an asset.

Non-interest-bearing Note

A promissory note in which no interest is earned or paid over the life of the note, with the borrower repaying only the face value of the note.

Straight-line Method

A depreciation method that allocates an equal portion of the cost of a fixed asset to each year of its useful life.