Use the Figure Below to Answer the Following Questions

question 35

Multiple Choice

Use the figure below to answer the following questions. Figure 3.2.1
-Point A in Figure 3.2.1 indicates that

• A)$1 is the least that consumers are willing to pay for the 4,000th apple.
• B)consumers will not be in equilibrium if the price of an apple is $1.
• C)consumers will only pay $1 for any apple.
• D)if the price is $1,consumers will plan to buy 4,000 apples.
• E)if the price is more than $1,consumers will buy 9,000 apples.

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Definitions:

Fixed Exchange Rate

A currency system in which the value of a country's currency is tied to the value of another single currency, a basket of other currencies, or another measure of value, such as gold.

Trade Barriers

Trade Barriers are government-imposed restrictions on the free exchange of goods and services between countries, including tariffs, quotas, and subsidies.

Free Trade

An economic policy of not discriminating against imports from and exports to foreign jurisdictions, allowing goods to move freely across borders.

Floating Exchange Rate

A currency valuation system that allows the value of the currency to fluctuate according to the foreign exchange market.