If Government Set a Minimum Price of $50 in the
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question 264

Multiple Choice

$$\begin{array} { | c | r | c | } \hline \text { Quantity Demanded } & \text { Price } & \text { Quantity Supplied } \\\hline 52 & \$ 50 & 73 \\\hline 62 & 45 & 62 \\\hline 72 & 40 & 51 \\\hline 82 & 35 & 42 \\\hline 92 & 30 & 33 \\\hline\end{array}$$ If government set a minimum price of $50 in the market, a

• A) shortage of 21 units would occur.
• B) shortage of 125 units would occur.
• C) surplus of 21 units would occur.
• D) surplus of 125 units would occur.

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Definitions:

Liabilities

Financial obligations a company owes to outside parties.

Assets

Resources owned or controlled by a business, which are expected to produce future economic benefits.

Accounting Equation

The fundamental principle of accounting that states Assets = Liabilities + Equity, which must always be in balance for accurate financial reporting.

Net Income

Net income is the total profit of a company after all expenses, including taxes and operational costs, are subtracted from its total revenue.