Figure 4-3 -Refer to the Figure 4-3. If the Price in This

question 126

Multiple Choice

Figure 4-3
-Refer to the Figure 4-3. If the price in this market is currently $14, what would happen?

• A) There would be a shortage of 20 units so producers would increase production.
• B) There would be a surplus of 20 units and the price would tend to fall.
• C) There would be a shortage of 40 units so producers would increase production.
• D) There would be a surplus of 40 units and the price would tend to fall.

---

Definitions:

Span of Control

The number of subordinates a supervisor or manager can effectively manage, controlling the complexity and scalability of an organization.

Mechanistic Structure

An organizational structure characterized by rigid procedures, fixed duties, and a clear hierarchy of authority.

Decentralized

The distribution of administrative powers or functions across a wide range of authorities or locations rather than being concentrated in one.

Span of Control

Refers to the number of subordinates or direct reports that a manager or supervisor can effectively oversee.