-Refer to the Graph Above to Answer This Question

question 139

Multiple Choice

-Refer to the graph above to answer this question.What is the effect of a price ceiling of $6?

• A)A shortage of 5 units.
• B)A shortage of 10 units.
• C)A surplus of 5 units.
• D)A surplus of 20 units.
• E)None of the choices are correct.

Recognize the impact of competition and product cost on the length of credit periods offered.

Understand the importance of cash discounts in the decision to offer credit.

Comprehend how changes in credit terms affect the cost of credit for customers.

Recognize the terms used in credit management such as receivables period and inventory turnover.

---

Definitions:

Histogram

A graphical representation of the distribution of numerical data, where the data is divided into bins or intervals, and the frequency of the data in each bin is depicted by the height of the bar.

Distribution

In statistics, distribution describes how the values of a dataset or variable are spread or dispersed.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression (e.g., 4 in 4x).

Model

A simplified representation of a system or phenomenon that describes its structure or function, often used in simulations.