Figure 6-9 -Refer to Figure 6-9.A Price Floor Set at

question 124

Multiple Choice

Figure 6-9
-Refer to Figure 6-9.A price floor set at

• A)$4 will be binding and will result in a shortage of 8 units.
• B)$4 will be binding and will result in a shortage of 16 units.
• C)$7 will be binding and will result in a surplus of 4 units.
• D)$7 will be binding and will result in a surplus of 8 units.

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Definitions:

Monopolist

A single seller in a market, who has significant control over the price and supply of a product.

Price Per Unit

The cost assigned to a single unit of a good or service.

Marginal Revenue

The profit derived from the sale of an additional item of a product or service.

Cheese

A dairy product made from curdled or cultured milk that comes in various flavors and textures.