Use the Following to Answer Question

question 121

Multiple Choice

Use the following to answer question:
-(Table: Demand Schedule of Gadgets) Use Table: Demand Schedule of Gadgets.The market for gadgets consists of two producers,Margaret and Ray.Each firm can produce gadgets with no marginal cost or fixed cost.Suppose that these two producers have formed a cartel,agreed to split production of output evenly,and are maximizing total industry profits.If Margaret decides to cheat on the agreement and sell 100 more gadgets,the market price of gadgets will be:

• A)$4.
• B)$5.
• C)$6.
• D)$7.

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Definitions:

Bond Buyer

An investor who purchases bonds, which are securities that represent a loan made by the investor to the bond issuer.

Saving Rate

The proportion of disposable income that is not spent on consumption but reserved for future use or investment.

Living Standards

refer to the quality and quantity of goods and services available to individuals or societies, reflecting their economic prosperity and quality of life.

Financial System

The group of institutions in the economy that help to match one person’s saving with another person’s investment