Refer to the Accompanying Figure to Answer the Questions That

question 125

Multiple Choice

Refer to the accompanying figure to answer the questions that follow.

-The market is currently at market equilibrium.If a binding price ceiling of P₁ is imposed,by how much would the quantity demanded change?

• A) It would increase by 12,000 units.
• B) It would decrease by 30,500 units.
• C) It would decrease by 12,000 units.
• D) It would increase by 30,500 units.
• E) It would increase by 30,000 units.

---

Definitions:

Cost of Goods Purchased

The total expense incurred by a company to buy the goods it has sold or will sell, excluding any indirect costs.

Finished Goods Inventory

The value of a company's inventory of products that are complete and ready for sale.

Cost of Goods Manufactured

The total cost of goods completed during a specific period, including labor, materials, and overhead.

Cost of Goods Available for Sale

The total cost of beginning inventory plus the cost of goods purchased or manufactured during an accounting period, before any sales are subtracted.