Use the Following to Answer Questions

question 17

Multiple Choice

Use the following to answer questions:
Figure: Price Ceilings and Consumer Valuation
-(Figure: Price Ceilings and Consumer Valuation) Refer to the figure. Suppose a price ceiling of $3 goes into effect. If the goods sold are allocated to buyers randomly, what is the total consumer surplus in this market?

• A) $90
• B) $120
• C) $30
• D) $150

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Definitions:

Equity Holders

Individuals or entities that own equity shares in a company, giving them rights to its profits and assets.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interest and possibly the right to vote on corporate matters.

Dividend Payment

A distribution of a portion of a company's earnings to its shareholders, typically in the form of cash or stock.

Common Shareholders

Individuals or entities that own common shares in a company, representing ownership stake and usually having voting rights.