Table 6-4 The Following Table Contains the Demand Schedule and Supply Schedule

question 506

Multiple Choice

Table 6-4
The following table contains the demand schedule and supply schedule for a market for a particular good. Suppose sellers of the good successfully lobby Congress to impose a price floor $3 above the equilibrium price in this market.
-Refer to Table 6-4. How many units of the good are sold after the imposition of the price floor?

• A)3
• B)9
• C)15
• D)18

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Definitions:

Cost-Plus Pricing

A pricing strategy where a fixed percentage or amount is added to the cost of producing a product or service to determine its selling price.

Full Cost

The total cost of production that includes both direct and indirect costs, such as raw materials, labor, and overhead.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several different investments.

Total Variable Cost

The cumulative cost that varies directly with the level of production or sales volume.