If a Price Floor Is Set at $23 in the Market

question 43

Multiple Choice

If a price floor is set at $23 in the market shown in the graph, the total number of units traded will:

• A)fall by 20, relative to equilibrium.
• B)fall by 27, relative to equilibrium.
• C)fall by 37, relative to equilibrium.
• D)rise by 10, relative to equilibrium.

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Definitions:

Possession

The act of having or controlling something, either physically or legally.

Covenant of Quiet Enjoyment

A lease provision assuring the tenant a right to freely and quietly use the leased premises without disturbance by claims of superior title.

Lessee

A person or entity that leases or rents property or equipment from another, the lessor, under the terms of a lease agreement.

Lessee

An individual or entity that leases property or equipment from another party, the lessor.