Figure 6-31 -Refer to Figure 6-31.If the Government Set a Price Ceiling

question 31

Short Answer

Figure 6-31
-Refer to Figure 6-31.If the government set a price ceiling at $9,would there be a shortage or surplus,and how large would be the shortage/surplus?

---

Definitions:

Note Payable

A written agreement in which one party promises to pay another party a certain amount of money at a specific future date or on demand.

Credit Balance

A positive amount that represents a sum of money owed to a company in its books.

Form W-4

A U.S. tax form used by employees to indicate their tax situation to their employer, such as marital status and allowances, to determine withholding tax.

Federal Income Taxes

Taxes levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.