Exhibit 4-9 Data on Supply and Demand

question 64

Multiple Choice

Exhibit 4-9 Data on supply and demand
In Exhibit 4-9, if a price ceiling is set at $1.50 the market result after adjustment is:

• A)a shortage of 150 units.
• B)a surplus of 100 units.
• C)shortage of 100 units.
• D)equilibrium at 200 units.

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Definitions:

Marginal Utility

The change in total satisfaction received from consuming one additional unit of a good or service.

Potato Chips

A thin slice of potato that has been deep fried, baked, or otherwise cooked until crunchy, often served as a snack.

Cola

A sweetened carbonated soft drink, usually flavored with a specific type of syrup and often caffeinated.

Marginal Utility

A term in economics referring to the additional satisfaction or utility that a person receives from consuming one more unit of a good or service.