Figure 7-1 -Refer to Figure 7-1.If the Price of the Good Is

question 12

Multiple Choice

Figure 7-1
-Refer to Figure 7-1.If the price of the good is $250,then consumer surplus amounts to

• A)$50.
• B)$100.
• C)$150.
• D)$200.

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Definitions:

Price Ceilings

Government-imposed limits on how high a price can be charged for a product, service, or commodity.

Equilibrium Price

The charge where the amount of merchandise supplied equals the amount consumers are willing to purchase.

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in price.

Elastic Supply

A situation where the supply of a good changes significantly when its price changes.