Figure 3-21 -Refer to Figure 3-21.At the Quantity Q₂

question 74

Multiple Choice

Figure 3-21

-Refer to Figure 3-21.At the quantity Q₂,

• A)the value to buyers and the cost to sellers are both P₂.
• B)the value to buyers is P₂ and the cost to sellers is P₃.
• C)the value to buyers and the cost to sellers are both P₃.
• D)the value to buyers is P₃ and the cost to sellers is P₂.

---

Definitions:

Negotiable Instruments

Substitutes for money that bestow unique benefits; vehicles for conveniently transferring funds or advancing credit.

Bills of Exchange Act

Legislation that regulates the creation and the use of bills of exchange, a type of negotiable instrument.

Holder in Due Course

A legal term describing someone who has obtained a negotiable instrument in good faith and for value, thus having certain protections.

Faulty Device

An apparatus or piece of equipment that has a defect or a malfunction.