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If the Price System Is Allowed to Function Without Interference

question 100

Multiple Choice

If the price system is allowed to function without interference and a surplus occurs,quantity demanded will _____________ and quantity supplied will _____________ until the price falls to its equilibrium.


Definitions:

Straight-Line Depreciation

A system for spreading out the cost of a tangible asset in equal yearly amounts across its functional life.

Average Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

Annual Income

The total earnings or revenue generated by an individual or business in one fiscal year before any deductions.

Capital Projects

Large, long-term investments undertaken to create, expand, or replace a company's physical assets.

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