Figure 3-6 -Refer to Figure 3-6.The Figure Above Represents the Market for the Market

question 120

Multiple Choice

Figure 3-6
-Refer to Figure 3-6.The figure above represents the market for coffee grinders.Assume that the market price is $21.Which of the following statement is true?

• A)There is a shortage that will cause the price to increase; quantity demanded will then decrease and quantity supplied will increase until the price equals $25.
• B)There is a shortage that will cause the price to increase; quantity supplied will then decrease and quantity demanded will increase until the price equals $25.
• C)There will be a shortage that will cause the price to increase; demand will then decrease and supply will increase until the price equals $25.
• D)There is a shortage that will cause the price to decrease; quantity demanded will then increase and quantity supplied will decrease until the price equals $25.

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Definitions:

Operating Lease

A contract that allows for the use of an asset but does not transfer ownership rights of the asset.

Maintains

The act of keeping equipment, systems, or processes in a state of effectiveness or efficiency through regular upkeep and repairs.

CRA

Canada Revenue Agency, the federal agency that administers tax laws for the Government of Canada and for most provinces and territories.

Lease Agreement

A contract specifying the terms under which one party agrees to rent property owned by another party.