Which of the Following Pairs of Equations Describes the Supply

question 106

Multiple Choice

Which of the following pairs of equations describes the supply and demand curves given in the accompanying demand and supply tables? $$\begin{array} { | c | c | c | } \hline \text { Price } & \text { Quantity Supplied } & \text { Quantity Demanded } \\\hline \$ 0 & 0 & 3 \\\hline \$ 1 & 0 & 2 \\\hline \$ 2 & 1 & 1 \\\hline \$ 3 & 2 & 0 \\\hline \$ 4 & 3 & 0 \\\hline \$ 5 & 4 & 0 \\\hline\end{array}$$

• A)Qs = 1; Qd = 1 ? 3P, respectively
• B)Qs = P; Qd = 3 ? 3P, respectively
• C)Qs = P + 1; Qd = 3 ? P, respectively
• D)Qs = P ? 1; Qd = 3 ? P, respectively

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Definitions:

Interest

The fee paid for borrowing money, typically a percentage of the principal, or the earnings from investment.

Equivalent Value

The value of one thing in terms of another, especially after considering different factors or conditions.

Rate of Return

The increase or decrease in the value of an investment during a certain timeframe, represented as a percent of the investment's initial cost.

Compounded Quarterly

Refers to the application of the compound interest rate to an investment or loan on a quarterly basis.