Please Refer to the Following Diagram If the Supply

question 16

Multiple Choice

Please refer to the following diagram If the supply curve is S, at a price of $2 there will be a

• A)surplus of 1.
• B)surplus of 2.
• C)shortage of 1.
• D)shortage of 2.

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Definitions:

Administrative Expense

Costs associated with the general administration of a business, including salaries of senior executives, legal and financial fees, and other general expenses.

Fixed Cost

Overheads that are not affected by the volume of production or sales, covering rent, employee salaries, and insurance fees.

Ending Inventory

Ending inventory refers to the final value of goods available for sale at the end of an accounting period.

Lawn Chairs

Portable chairs designed for use outdoors, particularly in lawns, gardens, or for leisure activities.