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

question 61

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
-According to Figure 12.2,the total clean up cost after the regulation is:

• A)area 0FIQ₂.
• B)area 0FGQ₁.
• C)area BEC.
• D)area BEP₁.
• E)area BEGF.

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Definitions:

Withdrawals

The act of taking out cash or other assets from a business by the owner for personal use.

Investments

Financial assets purchased with the expectation they will generate income or appreciate in the future.

Balance Sheet

The balance sheet is a financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Telephone Expense

This represents the cost associated with telephone usage and services for a business, classified as an office expense.