-Refer to the Above Figure

question 355

Multiple Choice

-Refer to the above figure. If a price floor of $3 was set

• A) the quantity sold would be 70 units.
• B) there would be a surplus of 40 units.
• C) there would be a shortage of 40 units.
• D) there would be a shortage of 20 units.

---

Definitions:

Market Growth

An increase in the demand for a particular product or service over time, which can be influenced by factors like changes in consumer preference, population growth, and technological advancement.

BCG Matrix

A strategic business tool developed by the Boston Consulting Group that uses market growth rate and market share to evaluate the relative performance of products or business units.

Market Leaders

Market leaders are companies that hold the largest market share in a particular industry or category, often setting trends, pricing standards, and competitive benchmarks.

Low-Growth Markets

Markets characterized by small or stagnant growth rates, making them challenging environments for businesses to achieve high returns.