FIGURE 5-2 -Refer to Figure 5-2.A Price Floor Set at a Price

question 63

Multiple Choice

FIGURE 5-2
-Refer to Figure 5-2.A price floor set at a price of $1.00 will result in

• A)a shortage of 10 units.
• B)a shortage of 20 units.
• C)a surplus of 10 units.
• D)a surplus of 20 units.
• E)no change in the market outcomes.

Understand the significance of marginal decisions in the allocation of time and resources.

Analyze the impact of opportunity cost in the context of free goods and services.

Distinguish between different types of costs and their relevance to economic decision-making.

Apply the principle of marginal analysis to determine optimal levels of activity.

---

Definitions:

Professional Blog

Website written by a person who reviews and gives recommendations on products and services.

Personal Blog

Website written by a person who receives no products or remuneration for his or her efforts.

Compensated

Involves receiving payment or other forms of remuneration in exchange for a product or service provided.

Professional Blogs

Online platforms managed by experts in their respective fields, focusing on providing detailed insights, commentary, and analyses on specific topics.