-Refer to Figure 2

question 106

Multiple Choice

-Refer to Figure 2.15 to answer this question.What will be the effect if the price is now $1,200?

• A)There would be a surplus of 30.
• B)There would be a shortage of 30.
• C)160 would be purchased.
• D)There would be a surplus of 60.
• E)The price will increase.

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Definitions:

Predict

To make an educated guess about the future based on existing information or trends.

Price and Output Policy

Strategies adopted by firms or the government to determine the prices of goods and services and the level of production to meet economic objectives.

Cartel Members

Firms or countries that coordinate together to control prices and production in an industry, limiting competition.

Incentive to Cheat

Motivations or circumstances that encourage individuals or entities to break rules or agreements for personal gain.