-Refer to the Graph Above to Answer This Question

question 56

Multiple Choice

-Refer to the graph above to answer this question.If the government imposes an effective price ceiling of $4,what will be the illegal market price and quantity traded in the market?

• A)$5 and 30 units.
• B)$6 and 30 units.
• C)$6 and 35 units.
• D)$6 and 40 units.

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Definitions:

ROE

Return on Equity, a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Expected Earnings

The forecasted income of a company, often used by investors to gauge the company's future profitability.

Common Shareholders' Equity

The amount of money that would be returned to shareholders if all the company's assets were liquidated and all its debts paid off.

Replacement Cost

The cost to replace an asset with another of similar kind and quality at current prices, without deduction for depreciation.