At january 1, 2019, alpha leased restaurant equipment from spring corporation under a six-year lease agreement in a finance lease. the lease agreement specifies annual payments of $20,000 beginning january 1, 2019, the beginning of the lease, and at each december 31 thereafter through 2023. the equipment was acquired recently by spring at a cost of $120,000 and was expected to have a useful life of eight years with no salvage value at the end of its life. spring seeks a 5% return on its lease investments. the total decrease in earnings (pretax) in alpha december 31, 2019, income statement would be:

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.