-Refer to the Graph Above to Answer This Question

question 66

Multiple Choice

-Refer to the graph above to answer this question. What would be the result if a price floor is set which is $2 different from the equilibrium price and demand increased by 30?

• A) The price would be above equilibrium and a surplus of 30 would be produced.
• B) The price would be below equilibrium and a shortage of 30 would be produced.
• C) The price would be above equilibrium and a shortage of 30 would be produced.
• D) The price would be below equilibrium and a surplus of 30 would be produced.

---

Definitions:

Equal Annual Payments

Regular payments of the same amount made annually, often used in loans or annuities.

Equipment Cost

Refers to the total cost incurred to acquire and prepare an item of equipment for its intended use, including the purchase price, shipping fees, installation costs, and any other expenditures necessary to bring the equipment to a functional state.

Future Value

The value of an investment at a specified date in the future, considering factors like interest rates and time.

Present Value

The contemporary valuation of a future quantity of money or cash flow series, assuming a specific interest rate.