Use the Following Demand and Supply Functions: Demand $Q _ { d } = 900 - 60 p$

question 44

Multiple Choice

Use the following demand and supply functions: Demand: $Q _ { d } = 900 - 60 p$ Supply: $Q _ { s } = - 200 + 50 \mathrm { P }$ Let supply remain constant; an increase in income causes consumers to be willing and able to buy 220 more units at each price than they were previously.The new equilibrium price and quantity are

• A)P = $10 and Q = 520.
• B)P = $12 and Q = 400.
• C)P = $10 and Q = 80.
• D)P = $15 and Q = 600.

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Definitions:

Inflation

The pace of upsurge in the collective market prices for goods and services, decreasing the capacity to spend.

Interest Rates

The cost of borrowing money or the return on investment expressed as a percentage, typically on an annual basis.

CPI

Consumer Price Index, which measures the average change over time in the prices paid by consumers for a market basket of consumer goods and services.

Social Security Payments

These are government payments made to qualifying individuals, such as the elderly or disabled, to help support their income.