-Refer to the Above Figure

question 136

Multiple Choice

-Refer to the above figure. A surplus occurs if the government imposes

• A) a price floor at $60.
• B) a price floor at $20.
• C) a price ceiling at $60.
• D) a price ceiling at $20.

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Definitions:

Account

A record summarizing the financial transactions pertaining to a specific period or purpose, such as savings or checking in a bank.

Agency by Ratification

A situation where actions taken by a person who is not officially an agent are approved and accepted by the principal after the fact, thereby creating an agency relationship.

Affirms

To declare something to be true, confirm, or ratify, especially in a legal context.

Scope of Authority

The range or extent of power given to an individual or entity to act on behalf of another or make decisions.