What Will Happen in a Market Where a Non-Binding Price

question 68

Multiple Choice

What will happen in a market where a non-binding price ceiling is removed?

• A) There will be downward pressure on the price in the legal market.
• B) The products sold will improve in quality and become more plentiful.
• C) Sellers will face a reduced incentive to sell the product.
• D) The price and quantity will not change in the legal market.
• E) There will be increased pressure to buy and sell the good on the black market.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenue and expenses to the appropriate periods.

December Rent

A specific expense related to the leasing of property or space that is due in the month of December.