Suppose a Negatively Sloped Demand Curve and a Positively Sloped

question 17

Multiple Choice

Suppose a negatively sloped demand curve and a positively sloped supply curve intersect at a price and quantity combination of $100 and 600 units of the good.But suppose that producers actually produce and sell 610 units.What can we correctly say about market efficiency in this case?

• A)This market is not efficient because quantity demanded for the good exceeds quantity supplied.
• B)This market is efficient because economic surplus is maximized as production and consumption increase simultaneously.
• C)The value placed on the final 10 units of the good by consumers exceeds the additional costs associated with their production - this market is not efficient.
• D)The value placed on the final 10 units of the good by consumers is less than the additional costs associated with their production - this market is not efficient.
• E)The production and consumption of the additional 10 units of the good increases total economic surplus and increases market efficiency.

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Definitions:

Openness

A personality trait that refers to the extent to which an individual is open to experiencing a variety of activities, engaging in novel experiences, and demonstrating curiosity and creativity.

New Activities

Tasks or experiences that are novel or unfamiliar to an individual, offering opportunities for learning and growth.

Relatively Stable

Describes something that remains largely unchanged over time or under different conditions.

Traits

Enduring characteristics or tendencies that define an individual's behavior across various situations and over time.