Exhibit 4-10 Supply and Demand Data for Apricots

question 80

Multiple Choice

Exhibit 4-10 Supply and demand data for apricots

• A) There would be a shortage of apricots.
• B) Buyers would not want to purchase all of the apricots that are supplied.
• C) There would be a surplus of apricots.
• D) Farmers would reduce the number of acres allocated to the growing of apricots.

Bushels demanded per month	Price per bushel	Bushels supplied per month
50	$5	80
55	4	75
60	3	70
65	2	65
70	1	55

Which of the following would occur if the government set a price ceiling of $1 in the market shown in Exhibit 4-10?

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Definitions:

Liquid Assets

Assets that can be quickly and easily converted into cash without significant loss of value.

Current Liabilities

Financial liabilities of a business that are to be settled within the next 12 months.

Current Assets

Resources anticipated to be transformed into cash, disposed of, or utilized within a year or during the normal operating cycle of a company.