Refer to the Accompanying Figure, Which Shows Both Short-Run and Long-Run

question 94

Multiple Choice

Refer to the accompanying figure, which shows both short-run and long-run demand and supply curves. If there is a $x binding price floor imposed on a pharmaceutical drug, what will be the amount of the disequilibrium in the short run?

• A) There will be a surplus of 1,500,000 units.
• B) There will be a surplus of 800,000 units.
• C) There will not be a surplus; there will be a shortage.
• D) There will be a surplus of 2,000,000 units.
• E) There will be a surplus of 500,000 units.

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Definitions:

Intraorganizational

Pertaining to the activities, interactions, or operations conducted within a single organization.

Extraorganizational

Extraorganizational refers to activities, practices, or influences that exist or occur outside the boundaries of a specific organization.

Ad Hoc Reports

Custom reports generated to meet specific criteria at a particular time, not scheduled or part of regular reporting.

Configure-to-order

A manufacturing process where products are assembled and configured according to the specific requirements of the customer after the order is received.