If a Price Ceiling of $12 Is Set in the Market

question 110

Multiple Choice

If a price ceiling of $12 is set in the market shown in the graph, what will consumer surplus be?

• A)$260
• B)$130
• C)$88
• D)$60

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Definitions:

Trial Balance

A bookkeeping worksheet listing the balances of all ledgers in two columns, debits and credits, used to verify the equality of the two totals.

Cash Dividend

A payment made by a company to its shareholders, typically in the form of cash, out of its profits or reserves.

Journalize

The process of recording transactions in a journal, marking the first step in the accounting cycle.

Transactions

The act of buying or selling goods, services, or financial instruments, which can be recorded in the financial records of a business or individual.