Table 6-1 -Refer to Table 6-1.Suppose the Government Imposes a Price Floor

question 270

Multiple Choice

Table 6-1

-Refer to Table 6-1.Suppose the government imposes a price floor of $1 on this market.What will be the size of the surplus in this market?

• A) 0 units
• B) 2 units
• C) 8 units
• D) 10 units

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Definitions:

Withdraws

Money taken out of a business by its owner(s) for personal use.

Partnership

A business structure where two or more individuals share ownership, as well as the profits or losses of the business.

Capital Balances

The amount of money or value of assets that a company or an individual has invested in a business.

Net Income

The profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.