Refer to the Accompanying Figure,which Shows Both Short-Run and Long-Run

question 144

Multiple Choice

Refer to the accompanying figure,which shows both short-run and long-run demand and supply curves.If there is a $x binding price floor imposed on a pharmaceutical drug,what will be the amount of the disequilibrium in the short run?

• A) There will be a surplus of 1,500,000 units.
• B) There will be a surplus of 800,000 units.
• C) There will not be a surplus; there will be a shortage.
• D) There will be a surplus of 2,000,000 units.
• E) There will be a surplus of 500,000 units.

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Definitions:

Convey Distance

The process of communicating or expressing the physical space or separation between objects or locations.

Continuity

The psychological principle suggesting that development involves gradual and ongoing changes, without sudden shifts or stages.

Organize Stimuli

The process of perceiving and categorizing sensory input from the environment into meaningful patterns or categories.

Figure-Ground

A principle in perceptual organization where an object (the figure) is perceived distinctly from its surroundings (the ground).