-Refer to the Above Figure

question 278

Multiple Choice

-Refer to the above figure. If the government set a price floor of $3.50 per gallon, there would be

• A) an excess quantity demanded equal to 100,000 gallons.
• B) an excess quantity supplied equal to the distance BD.
• C) an excess quantity supplied equal to the distance BF.
• D) an excess quantity supplied equal to 100,000 gallons.

---

Definitions:

Labor-Intensive Goods

Products or services that require a relatively high amount of labor compared to capital in their production or delivery processes.

Factor Endowments

Economic term for the amount and type of resources possessed by a country, such as land, labor, and capital, which contribute to its productive capacity.

World Trade

The exchange of goods, services, and capital between countries and territories across the globe, fostering economic integration and development.

Significant

Important or of consequence, often used to describe the extent to which something matters or impacts a given context.