Figure 6-14 -Refer to Figure 6-14.If the Horizontal Line on the Graph

question 164

Multiple Choice

Figure 6-14
-Refer to Figure 6-14.If the horizontal line on the graph represents a price ceiling,then the price ceiling is

• A)binding and creates a shortage of 20 units of the good.
• B)binding and creates a shortage of 40 units of the good.
• C)not binding but creates a shortage of 40 units of the good.
• D)not binding,and there will be no surplus or shortage of the good.

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Definitions:

Sample Mean

The average value computed from a subset (sample) of a population, used to estimate the population's mean.

Sample Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of sample data values.

Variance

A measure of the spread or dispersion of a set of values, indicating how much the values differ from the mean of the set.

Risk

Exposure to uncertainty or potential financial loss; the chance that an investment's actual gains will differ from expected gains.