TABLE 4-4 -Refer to Table 4-4. If the Government Intervenes in the Government

question 119

Multiple Choice

TABLE 4-4

-Refer to Table 4-4. If the government intervenes in the market for milk and sets a price floor of $1.20, what will be the result?

• A) There will be a surplus of 500 litres of milk.
• B) Some consumers will pay $1.00 per litre of milk.
• C) Some consumers will not be able to buy milk who wish to purchase it at that price.
• D) There will be a shortage of 500 litres of milk.

---

Definitions:

Periodic Payment

Recurrent payments made at regular intervals over a period of time, such as monthly mortgage or rent payments.

Ordinary Annuity

Regular payments of the same amount made at fixed intervals, where interest is added to the total at the end of each period.

Periodic Payment

Payments that are made regularly at set intervals, such as monthly or annually, often seen in loans and annuities.

Ordinary Annuity

A pattern of comparable payouts at the conclusion of adjacent periods within a set term.