-Refer to the Graph Above to Answer This Question

question 19

Multiple Choice

-Refer to the graph above to answer this question.What would be the effect of a price ceiling set $20 below the equilibrium price?

• A)A surplus of 100 units.
• B)A shortage of 100 units.
• C)300 units would be sold.
• D)There would be neither a surplus nor a shortage.
• E)The product would be overpriced.

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Definitions:

Actual Performance

The real, observed output, results, or accomplishments of a process, individual, or organization, often compared against planned or expected performance.

Predetermined Level

A set benchmark or standard established in advance to guide production activities or cost estimations.

Cost Variance

The difference between the expected (budgeted) cost of an activity and its actual cost.

Standard Cost

A predetermined cost serving as a benchmark for evaluating the actual cost performance of activities.