-Refer to the Above Figure

question 116

Multiple Choice

-Refer to the above figure. Other things being equal, when the government imposes a price floor at P2, then we would expect

• A) the quantity demanded is Q2.
• B) a surplus will occur.
• C) price to decline until an equilibrium is achieved at P0.
• D) consumers to bid against each other for goods and force the price even higher.

---

Definitions:

Accounts Receivable Balance

Accounts receivable balance is the total amount of money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Payment Collections

The process of gathering payments or receivables from clients or customers.

Dun & Bradstreet Report

A report generated by Dun & Bradstreet that provides detailed financial and operational information on businesses, used for credit analysis.

Financial Statements

Formal records of the financial activities and condition of a business, person, or other entity, usually comprising the balance sheet, income statement, and cash flow statement.