Right Panel: the Market: a Shift of Short-Run Supply in Response

question 25

Multiple Choice

Right Panel: The market: a shift of short-run supply in response to an increase in demand.
-Refer to the diagrams above.If the market demand for wheat and the market supply of wheat are represented by D' and SRS,respectively,the market price is____ per bushel and the quantity produced by the market is__________ bushels of wheat per year.

• A) $1.20;12 million
• B) $1.20;12 thousand
• C) $1.12;12 thousand
• D) $1.12;14 million
• E) $1.20;10 million

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Definitions:

Independent

A term describing events that are not affected by other events, or variables with no association or influence on each other.

Net Present Value

A calculation that compares the value of all cash inflows and outflows of a project or investment using a specified discount rate.

Cash Inflows

Funds entering a business or project, typically received through sales, investments, or financing.

Cash Outflows

Money spent or costs incurred by a business or individual, resulting in a decrease in cash assets.