The Below Figure Shows the Demand and Supply Curves in the Market

question 47

Multiple Choice

The below figure shows the demand and supply curves in the market for gasoline. The price and quantity at the point of intersection of the demand and supply curves is $30 and 300 gallons respectively.Figure 3.6

-The removal of a price ceiling in a market results in:

• A)an increase in the market price.
• B)a shortage in the market.
• C)over-production of the commodity and a surplus.
• D)a fall in the market price.
• E)abnormal profits for producers.

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Definitions:

China

A country in East Asia, known for its vast landscape, populous cities, and significant cultural and historical heritage.

Displaced

Refers to individuals or populations forced to leave their usual residence due to environmental changes, conflict, or other disruptions.

Overuse

Utilizing a resource to such an extent that it leads to its significant depletion or damage.

Groundwater

Water held underground in the soil or in pores and crevices in rock, which is an important source of drinking water.