Refer to the Accompanying Figure for the Following Questions

question 85

Multiple Choice

Refer to the accompanying figure for the following questions.

-The accompanying figure describes the market for gasoline in a local community.If the government were to place a price floor at P₁,predict the resulting surplus or shortage.

• A) There would be a shortage of 75,000 units.
• B) There would be a surplus of 75,000 units.
• C) There would be neither a shortage nor a surplus.
• D) There would be a shortage of 150,000 units.
• E) There would be a surplus of 150,000 units.

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Definitions:

Market Segmentation

Involves aggregating prospective buyers into groups, or segments, that have common needs and will respond similarly to a marketing action.

Prospective Buyers

Individuals or entities that are potential customers, showing interest in purchasing a product or service.

Marketing Action

Any initiative or step taken by a company to promote its products or services, aiming to achieve specific marketing objectives.

Consumption Behavior

The study of how individuals make decisions to spend their available resources on various products and services.