Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. What is the equilibrium quantity?
a. 20
b. 40
c. 60
d. 80
b
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Under a gold standard system, central banks can follow an independent monetary policy
Indicate whether the statement is true or false
Which pair of goods is most likely to have a negative cross-price elasticity?
A. All cross-price elasticities are negative, but often reported in absolute value. B. Peanut butter and jelly. C. Butter and margarine. D. Milk and pencils.
If the demand for milk is downward sloping, then an increase in the price of milk will result in a(n): a. increase in the demand for milk
b. decrease in the demand for milk. c. increase in the quantity of milk demanded. d. decrease in the quantity of milk demanded.
The current Social Security System surplus of revenues relative to expenditures is used to purchase
a. U.S. Treasury bonds. b. bonds issued by domestic corporations. c. U.S. stock. d. U.S. and foreign stock.