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

question 574

Multiple Choice

Figure 6-5
-Refer to Figure 6-5. If the horizontal line on the graph represents a price ceiling, then the price ceiling 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) not binding but 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:

Substantial Performance

Refers to a situation where a party has completed most of a contract's terms, fulfilling enough of the contract to warrant payment, though some minor elements may still be needed.

Complete Performance

Complete Performance refers to the full and exact execution of all terms and obligations as outlined in a contract or agreement, leaving no duties unfulfilled.

Tender

An offer to perform an obligation or supply goods at a fixed price.

Condition Subsequent

A condition in a contract that, if it occurs, terminates an already established right or obligation.