Use the Following to Answer Questions

question 3

Multiple Choice

Use the following to answer questions:
Figure: Market I
-(Figure: Market I) Look at the figure Market I. If a price floor of $15 is imposed on this market and the government chooses to purchase the surplus, the government must buy _____ units of the good and spend a total amount of _____ on its purchase.

• A) 5; $75
• B) 10; $150
• C) 9; $135
• D) 9; $81

---

Definitions:

Demand Function

A mathematical relationship that expresses the quantity of a good or service demanded at various prices.

Newspaper Prices

The cost at which newspapers are sold to consumers, which can influence demand and circulation numbers.

Joint Operating Agreement

A contractual agreement among co-venturers specifying the terms and conditions under which a joint venture will operate and the responsibilities and share of each participant.

Marginal Cost

The cost added by producing one additional unit of a good or service, crucial for decision-making in business.