-Refer to Exhibit 3-1

question 117

Multiple Choice

-Refer to Exhibit 3-1.At a price of $6 there is a

• A) surplus of 100 units.
• B) surplus of 150 units.
• C) surplus of 200 units.
• D) shortage of 150 units.
• E) shortage of 200 units.

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Definitions:

Utility

The satisfaction or benefit derived by consumers from consuming a good or service.

Expected Utility

A concept in economics that represents the sum of utilities associated with all possible outcomes, weighted by the probability of each outcome.

Utility

A measure of the satisfaction or happiness that consumers get from consuming goods or services.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1.