​Exhibit 4-11 Refer to Exhibit 4-11

question 40

Multiple Choice

​Exhibit 4-11 Refer to Exhibit 4-11.  Suppose that the government imposes a price floor in the market for good ABC at a price of $7. How many fewer units would be bought and sold at the price floor compared to the number of units that would be bought and sold in a free market?

• A)20
• B)30
• C)40
• D)60
• E)80

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace for loans and investments, often influenced by central bank rates, inflation, and market demand.

Annual Dividend

The yearly total of dividend distributions made by a company to its shareholders.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividends paid to shareholders.

Dividend Increases

Instances where a company raises the amount of money it pays to its stockholders in dividends.