FIGURE 2-3 -Refer to Figure 2-3.At X₂ on Curve B,the

question 60

Multiple Choice

FIGURE 2-3
-Refer to Figure 2-3.At X₂ on curve B,the

• A)maximum occurs at Y₁.
• B)minimum occurs at Y_4.
• C)slope of the curve is zero.
• D)slope is increasing.
• E)slope is decreasing.

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Definitions:

Surplus

A situation where the quantity of a product supplied exceeds the quantity demanded, often resulting in a decrease in prices.

Shortage

A shortage occurs when the demand for a product exceeds the supply of that product at a specific price.

Price Floor

A government-imposed minimum price charged for a commodity, aimed at preventing prices from falling too low.

Surplus

In economic terms, it refers to the amount by which production, assets, or resources exceed the portion used, often leading to excess supply in markets.