When a Price Floor That Has an Impact Is Removed,which

question 167

Multiple Choice

When a price floor that has an impact is removed,which of the following statements is correct?

• A)Price of the good increases.
• B)Quantity supplied for that good decreases.
• C)Demand for that good increases.
• D)None of these choices are correct.

---

Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Market-To-Book Value

A ratio comparing a company's current market price to its book value, used to evaluate whether a stock is over or undervalued.

Financial Statements

Are formal records of the financial activities and position of a business, person, or other entity, providing an overview of a company's financial condition in both short and long term.

Average Collection Period

The ratio of accounts receivable to daily sales. Also called days’ receivables.