Figure 4-9 Figure 4-9 Shows the Demand and Supply

question 225

Multiple Choice

Figure 4-9 Figure 4-9 shows the demand and supply curves for the almond market. The government believes that the equilibrium price is too low and tries to help almond growers by setting a price floor at Pf.
-Which of the following is not a result of imposing a rent ceiling?

• A) Some consumer surplus is converted to producer surplus.
• B) There is a reduction in the quantity supplied of apartments.
• C) There is an increase in the quantity demanded of apartments.
• D) The marginal benefit of the last apartment rented is greater than the marginal cost of supplying it.

Understand the definition and role of relevant costs in decision-making.

Identify and differentiate between types of costs and their relevance to managerial decisions.

Elucidate on the importance of forecasting future cash outlays in the context of relevant costs.

Recognize and list various types of short-term managerial decision tasks.

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Definitions:

Prescribed Event

A specific occurrence or event that is outlined or defined within a legal or contractual context.

Merchant

An individual or business that sells goods or services in exchange for money.

Sale Of Goods Contract

An agreement between a buyer and a seller for the purchase and sale of specific goods.

Mode Of Acceptance

The manner in which an offer can be accepted, creating a binding contract, which may include actions, words, or performance.