Suppose the supply and demand tables shown reflect the supply and demand for milk per week. At a price of $4, there is a:Price(per gallon)Quantity demanded (gallons per week)Quantity Supplied (gallons per week)$12,0001,000$21,5001,500$31,0002,000$45002,500
A. shortage of 1,000 gallons per week.
B. shortage of 2,000 gallons per week.
C. surplus of 1,000 gallons per week.
D. surplus of 2,000 gallons per week.
Answer: D
You might also like to view...
The interest rate at which the Federal Reserve Banks lend to commercial banks is called the ________.
A. discount rate B. short-term rate C. prime rate D. federal funds rate
The relationship between the marginal product of labor (MP), the product price (P), and marginal revenue product of labor (MRP) in a perfectly competitive market is
a. MP = P x MRP b. MP = MRP / P c. MRP = P + MP d. MRP = P / MP e. MP = P + MRP
Draw a supply curve, S1. Then draw a less elastic supply curve, S2.
Pie-Oh-My, a monopolistically competitive firm, is producing 80 gourmet pies per day and selling each pie for $32. At that production level ATC is $40, AVC is $30, AFC is $10, and both MR and MC are $16. In the short run, this firm should
A. continue to produce 80 pies, as price is greater than AVC. B. increase output to the point where price equals marginal cost. C. shutdown and produce zero pies and pay fixed costs. D. decrease output to the point where price equals average total cost.