Figure 6-9 -Refer to Figure 6-9.A Price Floor Set at

question 299

Multiple Choice

Figure 6-9

-Refer to Figure 6-9.A price floor set at

• A) $4 will be binding and will result in a shortage of 3 units.
• B) $4 will be binding and will result in a shortage of 6 units.
• C) $7 will be binding and will result in a surplus of 6 units.
• D) $7 will be binding and will result in a surplus of 12 units.

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Definitions:

Retail Partner

A business entity that sells products directly to consumers, often collaborating with manufacturers or wholesalers in a supply chain.

Selective Distribution

Lies between the intensive and exclusive distribution strategies; uses a few selected customers in a territory.

Retail Customers

Individuals who purchase goods or services for personal use from retail stores, as opposed to buying for business or resale purposes.

Wholesale Prices

The cost at which goods are sold by wholesalers to retailers, usually lower than the retail price due to the absence of retailer markup.