Suppose That the Equilibrium Price of a Good Is $7

question 18

Multiple Choice

Suppose that the equilibrium price of a good is $7.50 and the equilibrium quantity is 20 units.Thus,

• A) total revenue is $150 and total expenditure is less than $150.
• B) total revenue and total expenditure are equal at $150.
• C) total expenditure is $150 and total revenue is less than $150.
• D) total revenue is $150 but total expenditure cannot be calculated.
• E) total expenditure is $150 but total revenue cannot be calculated.

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Definitions:

Hyperbola

A type of smooth curve lying in a plane, defined as the locus of points such that the difference between the distances from two fixed points (foci) is constant.

Asymptotes

Lines that a curve approaches as it heads towards infinity, indicating the boundary beyond which a graph does not venture.

Vertices

Plural of vertex; refers to the multiple points where two or more curves, lines, or edges meet, especially as the corner points of polygons or angles.

Hyperbola

A type of smooth curve lying in a plane, defined by its geometric properties or by equations for which it is the solution set.