-The Above Figure Shows the Market for Apples

question 144

Multiple Choice

-The above figure shows the market for apples.If a consumer group convinces the government to set a maximum price of $2 per pound,then

• A) 300 pounds of apples will be sold at $2.
• B) no apples will be supplied.
• C) no apples will be demanded.
• D) None of the above.

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Definitions:

Price Level

An index reflecting the mean of current prices for a wide array of products and services in the economy.

Imported Raw Materials

Raw or unprocessed goods brought into a country from abroad for use in manufacturing or production.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by an economy in a given year, expressed in base-year prices.

Nominal GDP

GDP based on prices prevailing at the time of production.