The Table Given Below Reports the Quantity Demanded and Supplied

question 91

Multiple Choice

The table given below reports the quantity demanded and supplied of a commodity at different prices in a market.Table 3.5

-Which of the following is true of a price floor?

• A)A price floor allows supply and demand to function effectively.
• B)A price floor is set such that the price is not allowed to increase above a certain level.
• C)A price floor is beneficial to buyers in a market.
• D)A price floor usually creates a shortage of a good in a market.
• E)A price floor is set such that the price is not allowed to decrease below a certain level.

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Definitions:

Gross Margin Ratio

A financial indicator that calculates the disparity between sales and the cost of goods sold, represented as a portion of sales revenue.

Net Sales

The total revenue from sales reduced by returns, allowances for damaged or missing goods, and discounts.

FOB Destination

A shipping term where the seller pays for transportation of the goods to the buyer's location, and ownership of the goods transfers upon delivery.

Shipping Charges

Shipping charges are fees associated with the transport of goods from one location to another, typically incurred by the seller or buyer in a transaction.