Use the Following to Answer Question 96

question 164

Multiple Choice

Use the following to answer question 96:
Figure: Supply and Demand 3
-(Figure: Supply and Demand 3) Refer to the figure. If the government sets a price ceiling at $8 in this figure, it will create a deadweight loss of:

• A) $6.
• B) $36.
• C) $9.
• D) $24.

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Definitions:

Loan Repaid

The act of paying back borrowed money to the lender.

Borrowed

The state of having taken something on loan, often with the obligation to return it or repay an equivalent amount.

Annual Rate

The interest rate for a whole year, as opposed to just a monthly or daily rate.

Days

A unit of time equivalent to 24 hours, often used to measure durations or intervals.