In the Following Figure,the First Panel Shows a Market Situation

question 39

Multiple Choice

In the following figure,the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation. Figure 12.2 In the figure,
D: Demand curve for automobiles
S₁: Supply curve of automobiles prior to regulation
S₂: Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Refer to Figure 12.2.The regulation will benefit the society if:

• A)area BAJ > area 0FIQ₂.
• B)area AECJ > area IGQ₁Q₂.
• C)area IGQ₁Q₂ > area AECJ.
• D)area BAJ > BAC.
• E)area 0FIQ₂ > area BAJ.

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Definitions:

Bond Discount

The difference between the selling price of a bond and the bond’s face value when the bond is sold for less than par.

Coupon Rate

The rate of interest a bond pays annually, calculated as a percentage of its face value.

Call Feature

A provision in a bond agreement or other loan instrument that allows the issuer the option to repay the borrowed funds prior to the security's maturity date under specified conditions.

Worldview

A comprehensive perspective from which one sees and interprets the world and their environment, encompassing beliefs, values, and attitudes.