What Is the Amount of Raw Materials Used

question 70

Multiple Choice

What is the amount of Raw Materials Used?

• A) $5,000
• B) $65,000
• C) $75,000
• D) $30,000

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Definitions:

Shortage/Surplus

A market condition where the quantity demanded is greater/smaller than the quantity supplied, leading to a scarcity/excess of goods.

Price Ceiling

A legally imposed maximum price on goods or services, preventing prices from rising above a certain level.

Shortage/Surplus

A situation where the quantity of a good demanded exceeds the quantity supplied (shortage) or the quantity supplied exceeds the quantity demanded (surplus).

Price Ceiling

A cap set by the government on the maximum price that can be asked for a good, service, or commodity.