(Figure: Price Adjustment) Refer to the Figure

question 37

Multiple Choice

(Figure: Price Adjustment) Refer to the figure. If the price of the product is $14, there is a:

• A) shortage of 30 units of the product, and the price will rise to $16.
• B) surplus of 20 units of the product, and the price will rise to $16.
• C) shortage of 50 units of the product, and the price will rise to $16.
• D) surplus of 40 units of the product, and the price will rise to $16.

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Definitions:

Contractual Liability

The legal obligations that parties have under a contract, including the consequences of breach.

Principal

The main party to a transaction, acting on their own behalf, such as the owner of a business or the person for whom an agent acts.

Third Party

A third party is an individual or entity who is not directly involved in a legal agreement or dispute but may be affected by it or have rights or obligations related to it.

Improper Person

An individual deemed unsuitable or unqualified under certain criteria or regulations.