-The Above Figure Shows the Market for Apples

question 121

Multiple Choice

-The above figure shows the market for apples. If a consumer group convinces the government to set a maximum price of $2 per pound, then

• A)300 pounds of apples will be sold at $2.
• B)no apples will be supplied.
• C)no apples will be demanded.
• D)there will be a shortage of 100 pounds of apples.

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Definitions:

Deferred Gross Profit

The portion of profit resulting from sales made on installment that is not recognized immediately but deferred to future periods.

Gross Profit

The difference between the revenue generated from sales and the cost of goods sold, indicating the basic profitability of a company's products or services.

Consignment-out

The process of sending goods to another party to sell on behalf of the sender, retaining ownership until the goods are sold.