Figure 6-7 -Refer to Figure 6-7.Suppose a Price Ceiling of $5 Is

question 90

Multiple Choice

Figure 6-7

-Refer to Figure 6-7.Suppose a price ceiling of $5 is imposed on this market.As a result,

• A) the quantity of the good supplied decreases by 20 units.
• B) the demand curve shifts to the left so as to now pass through the point (quantity = 40, price = $5).
• C) buyers' total expenditure on the good decreases by $100.
• D) the price of the good continues to serve as the rationing mechanism.

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Definitions:

Fold and Thrust Belt

A series of mountainous folds and thrust faults created by the compression of the earth's crust.

Foreland Basin

A structural basin that forms adjacent to mountain ranges, resulting from the earth's crust flexing downward due to the weight of overlying mountains.

Normal Faults

Faults where the hanging wall moves downward relative to the footwall, typically caused by extensional forces.

Crust Thicken

The process by which the Earth's crust becomes thicker as a result of tectonic forces, volcanic activities, or sediment deposition.