Refer to the Accompanying Figure for the Next Two Questions

question 105

Multiple Choice

Refer to the accompanying figure for the next two questions.

-The accompanying figure describes the market for gasoline in a local community.If the government were to place a price floor at P₁,predict 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:

External Adaptation

The process by which an organization or individual adjusts to changes in the external environment.

Internal Integration

The process of ensuring that various components of an organization, such as departments and teams, work together effectively.

Institutional Value System

The set of fundamental beliefs, ethics, and norms that guide the behavior and practices within an organization or institution.

Exploration

Calls for the organization and its managers to stress freedom and radical thinking and therefore opens the firm to big changes—or what some call radical innovations.