Consider a market characterized by the following demand and supply conditions: PX = 15 - 2QX and PX = 3 + 2QX. The equilibrium price and quantity are, respectively,
A. $4 and 12 units.
B. $12 and 4 units.
C. $3 and 9 units.
D. $9 and 3 units.
Answer: D
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An insurance agent rents a building and has a three-year lease. An increase in the rent for the building increases the agent's
A) total cost and average variable cost. B) total variable cost and average variable cost. C) total fixed cost and total variable cost. D) total fixed cost and average fixed cost. E) total variable cost and total cost.
The figure above shows the market for milk in Cowland. If a subsidy paid to producers of $1 per gallon of milk is introduced, how many gallons are sold per year?
A) 200 million B) 400 million C) 300 million D) more than 300 million but less than 400 million
The relationship between sales and revenue is
A) a direct relationship. B) independent. C) a negative relationship. D) an inverse relationship.
In the real business cycle theory, during a period when output is falling,
a. workers are voluntarily giving up their jobs. b. the quantity supplied of labor is falling. c. aggregate productivity must be falling. d. all of the above. e. none of the above.