Reference: Ref 8-9 (Figure: Price Ceilings and Consumer Surplus) Refer

question 60

Multiple Choice

Reference: Ref 8-9 (Figure: Price Ceilings and Consumer Surplus) Refer to the figure. There is a price ceiling of $20. What is the value of consumer surplus if all the goods are allocated randomly?

• A) $120
• B) $180
• C) $80
• D) None of the answers is correct.

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Definitions:

Contract Rate

The agreed-upon price or interest rate specified within a contract.

Bond Indenture

A legal document specifying the terms and conditions of a bond issue, including the interest rate, maturity date, and other obligations of the issuer.

Bondholders

Individuals or institutions that hold the debt securities issued by corporations or governmental entities.

Discount on Bonds Payable

The difference between the par value of a bond and its lower selling price, recognized as an expense over the life of the bond.