Figure 6-5 -Refer to Figure 6-5.When a Certain Price Control Is Imposed

question 110

Multiple Choice

Figure 6-5

-Refer to Figure 6-5.When a certain price control is imposed in this market,the resulting quantity of the good that is actually bought and sold is such that buyers are willing and able to pay a maximum of P₁ dollars per unit for that quantity and sellers are willing and able to accept a minimum of P₂ dollars per unit for that quantity.If P₁ - P₂ = $3.00,then the price control in question is

• A)a price ceiling of $2.00.
• B)a price ceiling of $5.00.
• C)a price floor of $5.00.
• D)either a price ceiling of $2.00 or a price floor of $5.00.

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Definitions:

Special Indorsement

A method of endorsing a negotiable instrument, where the endorser specifies the person to whom or to whose order the instrument is payable.

Pay to the Order

A phrase used in cheques or negotiable instruments that specifies the person to whom the payment is to be made.

Indorsements

The act of signing one's name on the back of a negotiable instrument to legally transfer it to another party.

Blanket

In a general context, a large fabric designed for warmth, but in various fields can mean a broad coverage or application of something.