Use the Following to Answer Questions

question 38

Multiple Choice

Use the following to answer questions:
Figure: Market Equilibrium
-(Figure: Market Equilibrium) Refer to the figure. At a price of $3, quantity supplied is ______ and quantity demanded is ______, leading to a _______.

• A) 6; 2; surplus of 4 units
• B) 2; 6; shortage of 8 units
• C) 2; 4; surplus of 2 units
• D) 4; 2; shortage of 2 units

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Definitions:

Subrogation Clause

A provision in an insurance policy allowing the insurer to take legal action in the name of the insured against a third party responsible for the insured’s loss.

Property Damage

Physical harm or destruction to someone's tangible property caused by another's actions or negligence.

Occurrence

An event that happens or takes place, especially one of importance.

Declaratory Judgment

A court order that determines the rights of parties without ordering any specific action or awarding damages.