Figure 6-5 -Refer to Figure 6-5.If the Solid Horizontal Line on the Line

question 141

Multiple Choice

Figure 6-5
-Refer to Figure 6-5.If the solid horizontal line on the graph represents a price floor,then the price floor is

• A)binding and creates a surplus of 60 units of the good.
• B)binding and creates a surplus of 20 units of the good.
• C)binding and creates a surplus of 40 units of the good.
• D)not binding,and there will be no surplus or shortage of the good.

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Definitions:

Individual Retirement Account

A financial tool that provides tax advantages for retirement savings in the United States.

Exempt

Freed or relieved from a duty, requirement, or liability to which others are subject.

Security Interest

A legal claim or encumbrance on property or assets, securing the payment of a debt or performance of some other obligation.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to repay.