-Refer to Table 3

question 41

Multiple Choice

-Refer to Table 3.4. At a price of $45,

• A) we would expect the price to rise because of a shortage equal to 350 units.
• B) we would expect the amount purchased to fall because of a surplus equal to 350 units.
• C) none of the commodity is demanded.
• D) we would expect the price to fall because of a shortage equal to 350 units.
• E) 350 units of the commodity are supplied.

---

Definitions:

Disposable Unit

An item or component meant for a single use or limited time period before being discarded or replaced.

Smoker

An individual who consumes tobacco products through the act of smoking.

Direct Cross-Subsidies

Pricing a product or service above its market value to pay for the loss of giving away a product or service for free or below its market value.

Market Value

The current price at which an asset or company can be bought or sold in the marketplace.