-Refer to the Above Figure

question 185

Multiple Choice

-Refer to the above figure. If a price floor of $5 was set

• A) the quantity sold would be 80 units.
• B) there would be a surplus of 40 units.
• C) there would be a shortage of 40 units.
• D) there would be a shortage of 20 units.

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Definitions:

Sherman Act

A foundational antitrust law in the United States aimed at preventing monopolies and promoting competition among businesses.

Clayton Act

A United States antitrust law passed in 1914, aimed at promoting fair competition for the benefit of consumers by preventing unethical business practices.

Mergers

The combination of two or more companies into a single entity, typically with the aim of achieving business growth or improving competitive advantage.

Anticompetitive Behavior

Practices that unfairly restrict competition and harm consumers or other businesses.