Exhibit 4-3 -Refer to Exhibit 4-3.Which of the Following Is True

question 3

Multiple Choice

Exhibit 4-3
-Refer to Exhibit 4-3.Which of the following is true?

• A)If price P₁ is set as a price ceiling it will have an effect on the market for good X.
• B)If price P₁ is set as a price floor it will have an effect on the market for good X.
• C)Price P₁ is the equilibrium price for good X.
• D)If price P₁ is set as a price floor,then it is the highest price that can legally be charged in the market for good X.

---

Definitions:

Financial Report

A formal record of financial activities and the financial position of a business, person, or other entity, typically including balance sheets, income statements, and cash flow statements.

Printer A

A device or machine that reproduces text and images on paper or other media.

Critical Numbers

Critical numbers of a function are values of the variable at which the derivative of the function is 0 or undefined.

Horizontal Distance

Represents the straight-line distance between two points on a plane, measured along a line parallel to the horizontal axis.