Figure 3-2 -In Figure 3-2, at Point B

question 1

Multiple Choice

Figure 3-2
-In Figure 3-2, at point B

• A)it is impossible to increase production of consumer goods.
• B)it is impossible to increase production of capital goods.
• C)it is possible to increase production of both capital goods and consumer goods simultaneously.
• D)it is impossible to increase production of both capital goods and consumer goods simultaneously.

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.

Price Ceiling

A legal maximum price that can be charged for a good or service, intended to protect consumers from high prices.

Price Ceiling

A legal maximum price that can be charged for a good or service, typically set by government.

Market for Apartments

The economic interaction of supply and demand determining the rental prices and availability of apartment units.