If Government Set a Maximum Price of $45 in the
\hline

question 246

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 maximum price of $45 in the market,

• A) a shortage of 21 units would arise.
• B) a surplus of 21 units would arise.
• C) a surplus of 40 units would arise.
• D) it would create neither a shortage nor a surplus.

---

Definitions:

Voidable

A term describing a contract or agreement that can be legally declared invalid by one or more of the parties involved.

Unconscionable

Describes an agreement that is so unjust or overwhelmingly one-sided in favor of one party that it is deemed unenforceable under the law.

Rescind

As the word is applied to contracts, to terminate the contract as to future transactions or to annul the contract from the beginning.

Rescind

To revoke, cancel, or repeal a contract, agreement, or offer, making it as though it never existed.