Exhibit 4-5

question 67

Multiple Choice

Exhibit 4-5
-Exhibit 4-5 depicts the milk market. The horizontal line, P, represents a price ceiling imposed by the government. Which of the following is true?

• A)In equilibrium, the quantity demanded is 800 gallons.
• B)At the ceiling price, there is a surplus.
• C)The quantity demanded at the price ceiling will equal the quantity supplied.
• D)The equilibrium price would be $1 per unit without the price ceiling.
• E)The quantity supplied at the price ceiling will equal the quantity sold.

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Definitions:

MSC Curve

The Marginal Social Cost curve, illustrating the total cost to society of producing one additional unit of a good.

Emissions

The release of pollutants or greenhouse gases into the atmosphere, often associated with industrial processes or vehicle exhaust.

Technologies

The application of scientific knowledge for practical purposes, especially in industry.

Housing Crisis

A situation where the availability of affordable housing is significantly reduced, leading to increased homelessness and housing insecurity.