Refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. If the initial demand and supply curves are D0 and S0, equilibrium price and quantity will be:
A. 0E and 0B respectively.
B. 0F and 0A respectively.
C. 0F and 0C respectively.
D. 0G and 0B respectively.
Answer: C
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Refer to Figure 7-3. On the above graph, identify the market equilibrium price and quantity, the efficient equilibrium price and quantity, and the value of the deadweight loss resulting from too few people receiving vaccinations
What will be an ideal response?
If the net present value is positive, the present value of the investment's stream of future operating profits is ________ than the present value of its cost and profit-maximizing managers ________ make the investment.
A) less; should not B) less; should C) greater; should D) greater; should not
When a government intervenes in an economy in a way that influences the relationship between households and businesses, it is:
A. serving the public good. B. reducing social welfare by interfering with the invisible hand. C. serving as an economic actor. D. serving as an economic referee.
Money is legal tender if: a. people willingly accept it in payment of debts. b. it is backed by gold or silver
c. it is commodity money. d. the government says it is. e. it is in a bank account.