Exhibit 3-4 Refer to Exhibit 3-4. a Price of $4 in the $4

question 56

Multiple Choice

Exhibit 3-4
Refer to Exhibit 3-4. A price of $4 in the market will result in

• A)a shortage of 10 units.
• B)a surplus of 10 units.
• C)a surplus of 5 units.
• D)a shortage of 5 units.
• E)no shortage or surplus.

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Definitions:

Exchange Rates

The rate at which one currency can be exchanged for another, which affects international trade and investments.

Equipment

Tangible property used in business operations that is not considered inventory and is expected to be used long-term.

Functional Currency

The currency of the primary economic environment in which an entity operates, and in which it generates and spends cash.

Exchange Rates

The price of one country's currency in terms of another's, used in international trade and investment.