Exhibit 4-9 Data on Supply and Demand -In Exhibit 4-9, If a Price Ceiling Is Set at r

question 120

Multiple Choice

Exhibit 4-9 Data on supply and demand $$\begin{array} { | r | c | c | } \hline \text { Price } & \begin{array} { c } \text { Quantity } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Supplied }\end{array} \\\hline \$ 2.00 & 100 & 300 \\1.50 & 150 & 250 \\1.00 & 200 & 200 \\0.50 & 250 & 150 \\\hline\end{array}$$
-In Exhibit 4-9, if a price ceiling is set at $1.50 the market result after adjustment is:

• A) a shortage of 150 units.
• B) a surplus of 100 units.
• C) shortage of 100 units.
• D) equilibrium at 200 units.

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Definitions:

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Productive Economic Resource

Assets or inputs used in the production of goods and services, including land, labor, capital, and entrepreneurship.

Entrepreneurship

The activity of setting up a business or businesses, taking on financial risks in the hope of profit.

Use Of Money

The various purposes for which money is used in an economy, including spending, saving, and investing.