Table 4-B -Refer to Table 4-C

question 71

Multiple Choice

Table 4-B
$\begin{array}{ccc}\text { Price per gallon } &\text { Quantity Demanded }&\text { Quantity Supplied of } \\&\text { (thousands of gallons) }&\text { gasoline (thousands of }\\&&\text { gallons) }\\\$ 4.50 & 600 & 2,000 \\\$ 4.25 & 700 & 1,900 \\\$ 4.00 & 800 & 1,800 \\\$ 3.75 & 950 & 1,700 \\\$ 3.50 & 1,200 & 1,600 \\\$ 3.25 & 1,500 & 1,500 \\\$ 3.00 & 1,800 & 1,400 \\\$ 2.75 & 2,100 & 1,300 \\\$ 2.50 & 2,400 & 1,200\end{array}$

-Refer to Table 4-C.If the government were to remove a price ceiling of $2.00 per gallon in the milk market, the result would be:

• A)a decrease in price and increase in the quantity of milk supplied.
• B)a decrease in price and increase in the quantity of milk demanded.
• C)an increase in both price and the quantity of milk supplied.
• D)an increase in both price and the quantity of milk demanded.
• E)the market price of milk would remain constant and the quantity of milk supplied would equal the quantity demanded.

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Definitions:

Obligor

An obligor is a person or entity legally bound to provide a payment, service, or other benefit to another party (the obligee) under the terms of a contract or legal agreement.

Statute of Frauds

The Statute of Frauds is a legal principle that requires certain kinds of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjuries.

Parol Evidence Rule

A legal principle that prevents parties from presenting extrinsic evidence that contradicts or adds to the written terms of a final contract.

Fair and Accurate Credit Transactions Act

U.S. law enacted to enhance consumer protection and reduce the risk of fraud and identity theft by ensuring accurate credit information.