Reference: Ref 4-4 (Table: Equilibrium Adjustment) Refer to the Table

question 23

Multiple Choice

Reference: Ref 4-4 (Table: Equilibrium Adjustment) Refer to the table. If the price in the free market is $2, then a:

• A) surplus of 50 units would exist and price would fall.
• B) surplus of 50 units would exist and price would rise.
• C) shortage of 50 units would exist and price would rise.
• D) shortage of 50 units would exist and price would fall.

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Definitions:

Feasible Outcomes

Possible results or conclusions that can realistically be achieved in a given scenario or model.

Computerized Assembly Line

A production line in which computers control the assembly of products, enhancing efficiency, precision, and consistency.

Iron Ore

A natural resource that is mined and used primarily in the production of steel.

Tax Policy

Government guidelines that determine the collection and management of taxes within a jurisdiction, affecting how wealth is distributed among the population.