(Table) the Table Shows the Demand of Three Individuals in a Market

question 236

Multiple Choice

(Table) The table shows the demand of three individuals in a market. Assuming they are the only buyers, what is total market demand if the price is $20? $$\begin{array} { c c c c } \text { Price } & \begin{array} { c } \text { Angel's } \\\text { Quantity } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Sally's } \\\text { Quantity } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Nadia's } \\\text { Quantity } \\\text { Demanded }\end{array} \\\text { \$5 } & 9 & 7 & 10 \\\text { \$10 } & 6 & 6 & 6 \\\text { \$15 } & 4 & 4 & 3 \\\text { \$20 } & 1 & 3 & 1 \\\text { \$25 } & 1 & 2 & 0\end{array}$$

• A) 5 units
• B) 1 unit
• C) 20 units
• D) 7 units

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Definitions:

Potential Level

The potential level of output, or potential GDP, is the maximum amount of goods and services an economy can produce when it is fully utilizing its resources, without causing inflation to rise.

Fixed-growth-rate Monetary Policy

A monetary policy framework aiming to maintain a predetermined rate of growth in the money supply.

Active Fiscal Policy

Government policy that involves altering government spending and taxation to influence the economy.

Short-run Phillips Curve

An economic model depicting an inverse relationship between the rate of unemployment and the rate of inflation in the short-term.