In Which of the Following Statements Are the Terms Demand

question 150

Multiple Choice

In which of the following statements are the terms demand, supply, quantity demanded, and/or quantity supplied used correctly?

• A)When the quantity demanded exceeds supply, the equilibrium price will rise.
• B)Changes in demand and supply cause changes in the equilibrium price.
• C)If the demand rises, supply rises.
• D)Oranges are cheaper in Florida; therefore, the demand is greater in Florida.
• E)Decreases in quantity demanded and quantity supplied often occur simultaneously.

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Definitions:

Value Of The Good

The importance, worth, or usefulness of a good to consumers, often reflected in the price they are willing to pay.

Consumer Surplus

The contrast in the overall payment consumers have the willingness and fiscal capability to make for a good or service, compared to the payment they actually make.

Perfectly Price-Discriminating Monopoly

A theoretical market structure in which a monopolist charges each consumer the maximum they are willing to pay, capturing all consumer surplus.

Profit-Maximizing Level

The point at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.