The Table Below Displays Hypothetical Demand and Supply Schedules for the Market

question 160

Multiple Choice

The table below displays hypothetical demand and supply schedules for the market for overnight parcel deliveries in Canada. TABLE 3-4 Refer to Table 3-4.Suppose the price of overnight parcel delivery in Year 1 is $22.Which of the following statements is correct? In Year 1,

• A)there is an excess demand of 15 million deliveries.
• B)there is an excess demand of 30 million deliveries.
• C)115 million parcels will be delivered.
• D)there is an excess supply of 15 million deliveries.
• E)there is an excess supply of 30 million deliveries.

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Definitions:

Imitation

The act of copying or mimicking the features, designs, or actions of another product, service, or behavior, often with the intention of capturing value or recognition.

Technological Advances

Improvements in technology, which typically lead to more efficient production processes, new products, or improved ways to perform tasks.

Diffusion

The process through which new ideas, products, or practices spread within a population or society.

Expected Rate of Return

The anticipated amount of profit or loss an investment is likely to generate, typically expressed as a percentage of the investment's initial cost.