Use the Following Figure to Answer the Questions That Follow

question 109

Multiple Choice

Use the following figure to answer the questions that follow.

-The accompanying figure describes the market for gasoline in a local community.If the government were to place a price floor at P₁,what would be the resulting surplus or shortage?

• A) There would be a shortage of 75,000 units.
• B) There would be a surplus of 75,000 units.
• C) There would be neither a shortage nor a surplus.
• D) There would be a shortage of 150,000 units.
• E) There would be a surplus of 150,000 units.

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Definitions:

Depletion

The allocation of the cost of natural resources over their productive life.

Granite

A very hard, granular, crystalline, igneous rock consisting mainly of quartz, mica, and feldspar; widely used as a building stone.

Patent

A government grant to an inventor, giving the exclusive right to manufacture, use, or sell an invention for a specified period.

Infringement Suit

A legal case initiated due to the unauthorized use of copyrighted material or violation of intellectual property rights.