Figure 4-17 Refer to Figure 4-17

question 145

Multiple Choice

Figure 4-17 Refer to Figure 4-17. Suppose a price ceiling of $4.50 is imposed. As a result,

• A) there is a shortage of 15 units of the good.
• B) the demand curve will shift to the left so as to now pass through the point (Q = 35, P = $4.50).
• C) the situation is very much like the one created by a binding minimum wage.
• D) the quantity of the good that is bought and sold is the same as it would have been had a price floor of $7.50 been imposed.

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Definitions:

Business Location

The physical place where a company is situated or operates from, including offices, retail stores, or manufacturing facilities.

Tract of Land

A large, defined area of land, which can be used for farming, development, or conservation purposes.

Profitability

The ability of a business or activity to generate income or profit exceeding its expenses and costs.

Partnership

A lawful business structure involving two or more people who divide both management responsibilities and earnings.