Figure 6-7 -Refer to Figure 6-7.Suppose a Price Ceiling of $5 Is

question 83

Multiple Choice

Figure 6-7
-Refer to Figure 6-7.Suppose a price ceiling of $5 is imposed on this market.As a result,

• A)the quantity of the good supplied decreases by 20 units.
• B)the demand curve shifts to the left;quantity sold is now 30 units and the price is $5.
• C)buyers' total expenditure on the good decreases by $80.
• D)the price of the good continues to serve as the rationing mechanism.

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Definitions:

Reward Power

The capacity to influence others through the distribution or promise of benefits and incentives.

Legitimate Power

The authority derived from a formal position or role within an organization, granting the ability to influence others' actions or decisions.

Referent Power

Referent power is a form of personal power that stems from being admired, respected, and liked by others, often leading to influence through the desire of others to be associated with the person.

Legitimate Power

The authority that a person or a position holds, which is recognized as rightful by those they govern or lead, often derived from official or formal roles.