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:

Illegal Contracts

Agreements that are void and unenforceable by law because they involve activities that are illegal.

Rescinds

The act of revoking, canceling, or annulling a contract or agreement.

Consideration

An item of value traded between entities within an agreement to make the contract enforceable by law.

Adhesion

A contract or agreement created by one party with significant power over the other, often leading to a lack of negotiation for the weaker party.