-From Table 2

question 167

Multiple Choice

-From Table 2.3, at the price of $1 there is a

• A)shortage of 5
• B)neither a shortage nor a surplus.
• C)shortage of 4.
• D)surplus of 4.

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Definitions:

Price Floor

A government or regulatory-imposed minimum price for goods or services, intended to prevent prices from dropping too low.

Shortage

A circumstance in which the market desire for a service or product is greater than the supply.

Surplus

The situation in which the quantity supplied of a product exceeds the quantity demanded, often leading to price decreases.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service, intended to protect consumers.