Exhibit 1A-5 Straight Line

question 222

Multiple Choice

Exhibit 1A-5 Straight line
-As shown in Exhibit 1A-5, the slope of straight line CD:

• A) decreases with increases in X.
• B) increases with increases in X.
• C) increases with decreases in X.
• D) remains constant with changes in X.

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Definitions:

Surplus

An excess amount of a product or resource relative to demand, often leading to lower prices or stockpiling.

Equilibrium Price

Equilibrium price is the price point at which the quantity of goods supplied equals the quantity of goods demanded in the market.

Price Ceiling

A legal maximum price that can be charged for a good or service, typically set by the government to ensure affordability.

Price Floor

A government or regulatory-imposed minimum price for a good or service, intended to prevent prices from falling below a certain level.