The Data Shows the Demand and Supply for Sugar

question 86

Multiple Choice

The data shows the demand and supply for sugar:
quantity of kilograms (in thousand per week)

-Refer to the information above to answer this question.What would happen if the government were to establish an effective price floor of $3 per kilogram of sugar?

• A)There would be a shortage of 40,000 kilograms of sugar in the market.
• B)There would be a surplus of 40,000 kilograms of sugar in the market.
• C)The farmers could sell only 40,000 kilograms of sugar in the market.
• D)The market would be in equilibrium selling 50,000 kilograms of sugar in the market.
• E)The farmers would sell all 70,000 kilograms of sugar in the market.

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Definitions:

Monthly Billing

A billing system where charges for services or goods are invoiced or billed on a monthly basis.

Statute of Limitations

A law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.

Collection Suit

A legal action taken by creditors to collect unpaid debts from a debtor through the court system.

Minor

Anyone under the age of majority—18 in most states, 21 in some jurisdictions.