If the Actual Market Price Were Fixed at $6 Per

question 32

Multiple Choice

If the actual market price were fixed at $6 per unit in Figure 3.2, Figure 3.2 Supply and Demand

• A)There would be a surplus of 40 units.
• B)There would be a surplus of 20 units.
• C)There would be a shortage of 40 units.
• D)There would be a shortage of 20 units.

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Definitions:

Cash Dividend

A cash disbursement from a corporation's earnings to its shareholders.

Common Stock

A type of equity security that represents ownership in a corporation, with shareholders entitled to vote on corporate matters and receive dividends.

Net Income

The amount of total revenues that exceeds total expenses of a company during a specific time period.