Refer to the Accompanying Figure for the Following Questions

question 85

Multiple Choice

Refer to the accompanying figure for the following questions.

-The accompanying figure describes the market for gasoline in a local community.If the government were to place a price floor at P₁,predict the resulting surplus or shortage.

• A) There would be a shortage of 75,000 units.
• B) There would be a surplus of 75,000 units.
• C) There would be neither a shortage nor a surplus.
• D) There would be a shortage of 150,000 units.
• E) There would be a surplus of 150,000 units.

---

Definitions:

Product Testing

The process of evaluating an item's performance, quality, and safety before it is released to the market.

Economic Espionage

The act of unlawfully acquiring confidential information about a country's economic policies, practices, or innovations for competitive advantage.

Competitor's Trash

Discarded or overlooked information from rival businesses that can be analyzed for competitive intelligence or market insights.

Proprietary Information

Confidential business information that provides a company a competitive advantage, such as trade secrets, patents, or proprietary processes.