Use the following to answer questions
Figure: Understanding Price Ceilings and Floors 
-(Figure: Understanding Price Ceilings and Floors)In the graph,a price of $25 would allow for an effective price ceiling.
Definitions:
Treasury Stock
Treasury stock consists of shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.
Paid-In Capital
The sum of money contributed by investors through the issuance of common or preferred stocks, encompassing both the nominal value of these shares and any premium above this value.
Par Value
The face value of a bond or stock as stated by the issuing company, which does not necessarily reflect its market value.
Market Value
The current price at which an asset or service can be bought or sold in a open and competitive market.
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