$\text { Demand and Supply Schedules for Chocolate Bars }$

question 48

Multiple Choice

$\text { Demand and Supply Schedules for Chocolate Bars }$
$\begin{array}{|c|c|c|}\hline \begin{array}{c}\text { Price } \\(\$) \end{array} & \begin{array}{c}\text { Quantity Demanded } \\\text { (thousandsperweek) }\end{array} & \begin{array}{c}\text { Quantity Supplied } \\\text { (thousands per week) }\end{array} \\\hline 2.00 & 1500 & 2100 \\\hline 1.80 & 1600 & 2050 \\\hline 1.60 & 1700 & 2000 \\\hline 1.40 & 1800 & 1950 \\\hline 1.20 & 1900 & 1900 \\\hline 1.00 & 2000 & 1850 \\\hline 0.80 & 2100 & 1800 \\\hline 0.60 & 2200 & 1750 \\\hline 0.40 & 2300 & 1700 \\\hline\end{array}$
$\text { TABLE 5-1 }$
-Refer to Table 5- 1. Suppose the government established a price floor of $1.00 per chocolate bar. How many thousands of chocolate bars would be exchanged per week?

• A) 1800
• B) 1850
• C) 2100
• D) 1900
• E) 2000

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Definitions:

Internal Rate

Often referred to as the Internal Rate of Return (IRR), it is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.