The above table gives the demand and supply schedules for cat food. What is the equilibrium price and quantity?
What will be an ideal response?
The equilibrium price is $2.50 per pound of cat food because that is the price at which the quantity demanded equals the quantity supplied. The equilibrium quantity of cat food is 40 tons per year.
You might also like to view...
Suppose a 10% increase in the price of aspirin leads to a 5% decrease in the quantity demanded of aspirin. The demand for aspirin, therefore, is
A. unit elastic. B. perfectly inelastic C. inelastic. D. elastic.
The gains from international trade are closely related to
A) the labor theory of value. B) how much the autarky price differs from the international price (i.e. the terms of trade). C) the fact that one country must lose from trade. D) All of the above.
Perfect central planning is nearly impossible for all of these reasons except
A. production processes between industries are often interdependent. B. some processes must be decided together, and not individually, because of their interdependence. C. if the output target for one industry is adjusted, many others must also be adjusted. D. All of these reasons are correct.
Capital goods are final goods, but their production is NOT part of GDP.
a. true b. false