Which of the Following Is Not a Likely Result of a Price

question 56

Multiple Choice

Which of the following is not a likely result of a price floor?

• A)Excess supply of a good
• B)A persistent shortage
• C)A market price higher than equilibrium
• D)The quantity supplied exceeds the quantity demanded.
• E)Resources are diverted away from other activities to deal with the extra output.

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Definitions:

Market Value

Today's market rate for the purchase or sale of services or assets.

Flotation Cost

Costs a company faces when it issues new securities, encompassing fees for underwriting, legal services, registration, and printing.

WACC

A measurement called the Weighted Average Cost of Capital assesses the cost of a business's capital, where every capital category is assigned a proportional weight.

Capital Structure

The particular combination of debt and equity that a company uses to finance its overall operations and growth.