Table 6-4 The Following Table Contains the Demand Schedule and Supply Schedule

question 185

Multiple Choice

Table 6-4
The following table contains the demand schedule and supply schedule for a market for a particular good. Suppose sellers of the good successfully lobby Congress to impose a price floor $3 above the equilibrium price in this market.
-Refer to Table 6-4. Following the imposition of a price floor $3 above the equilibrium price, irate buyers convince Congress to repeal the price floor and to impose a price ceiling $1 below the former price floor. The resulting market price is

• A)$2.
• B)$3.
• C)$4.
• D)$5.

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Definitions:

Risk And Return

The principle that the potential return on any investment is directly correlated with the amount of risk taken; higher risks typically offer the chance for greater rewards.

Average Variance

The mean of the squared deviations from the mean of a data set, indicating its volatility or variability.

Investment Period

The investment period is the duration over which an investment is held before it is sold or liquidated.

Rate Of Inflation

The annual percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.