Suppose That the Demand Curve for a Good Is Given

question 38

Multiple Choice

Suppose that the demand curve for a good is given by Q_D = 60 - 0.5P_D,while the supply curve for the good is given by Q_S = 20 + 0.5P_S.The equilibrium quantity is ______ and the equilibrium price is _____.

• A) 20;60
• B) 60;20
• C) 60;60
• D) 40;40
• E) 45;30

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Definitions:

Inflation

A general increase in prices and fall in the purchasing value of money over a period of time.

Salesperson

An individual who sells goods or services to customers, often responsible for negotiating prices, offering product insights, and closing sales.

Retired Couple

Two individuals in a partnership who have stopped working permanently, often relying on savings, pension, or government benefits for income.

Fixed-Wage Contract

An employment agreement where the salary does not change regardless of economic conditions or performance levels.