The Following Figure Shows the Effect of a Price Ceiling

question 62

Multiple Choice

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P₂ and quantity B.
Figure 10-1
-In Figure 10-1,what is the quantity of output produced after the imposition of the price ceiling at P₁?

• A)OA
• B)OB
• C)OC
• D)ON

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Definitions:

Discharged

In legal terms, refers to the completion or termination of an obligation, such as a debt or duty, often resulting in release from responsibility.

Discharge a Contract

The termination of a contractual obligation, either through fulfillment of the contract terms, mutual agreement, or other legal means.

Material Breach

A significant violation or failure to meet a contractual agreement, justifying termination of the contract by the other party.

Substantial

Of considerable importance, size, or worth; significantly large or of a degree that merits attention.