Figure 4-2 -Refer to the Figure 4-2. What Would Happen at a Happen

question 299

Multiple Choice

Figure 4-2
-Refer to the Figure 4-2. What would happen at a price of $35?

• A) A shortage would exist and the price would tend to fall.
• B) A shortage would exist and the price would tend to rise.
• C) A surplus would exist and the price would tend to rise.
• D) A surplus would exist and the price would tend to fall.

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Definitions:

Price Of Labor

The wages or salary that workers receive in exchange for their labor or services in the job market.

Widgets

A general term commonly used to describe any theoretical produced item or merchandise.

Economically Efficient

Refers to a situation where resources are allocated in a way that maximizes the net benefit to society.