-Refer to the Above Figure

question 386

Multiple Choice

-Refer to the above figure. If a price floor of $3 was set

• A)the quantity sold would be 80 units.
• B)there would be a surplus of 40 units.
• C)there would be a shortage of 40 units.
• D)there would be a shortage of 20 units.

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Definitions:

Substitutes

Goods or services that can be used in place of each other where the presence of one reduces the demand for the other.

Supply

The total amount of a product or service that is available to consumers in the market at current prices.

Quantity

Quantity refers to the amount or number of a material or immaterial good or service, often considered in terms of units or pieces.

Key Input

A crucial factor or resource required for the production process in an industry or manufacturing, significantly impacting the output.