Assume that the initial demand and supply curves in the above figure are DA and SA, respectively. The initial equilibrium price and quantity are
A) P1 and E.
B) P3 and F.
C) P1 and G.
D) P2 and F.
A
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Which of the following is true about the occurrence of the twin deficits?
A) They occur consistently in all the economies of the world except the United States. B) They always occur together. C) They did not occur after 1990 in the United States. D) They only occur when exchange rates are fixed.
Which of the following is a key criticism of the market economy as a system of allocation?
a. Goods and services are allocated unequally based on ability to pay. b. Producers have strong incentives to innovate because successful innovators are rewarded with higher profit. c. Consumers can transmit their preference for product quality and variety by way of their "dollar votes" cast in the marketplace. Since price is freely set based on supply and demand, there are few shortages or surpluses. d. None of the above.
Which of the following statements is true?
a. Goods are scarcer than services in an economy. b. Goods are scarce for neither the poor nor the rich. c. Goods are scarce for both the poor and the rich. d. Goods are scarce for the poor but not for the rich. e. Goods are scarce for the rich but not for the poor.
Which of the following facts about competitive ideas is true?
a. A successful competitive idea should be big in terms of investment. b. A competitive idea is usually built on a foundation of other ideas. c. A competitive idea should necessarily be scientific. d. A successful competitive idea must be original.