Assume There Are 100 Suppliers of Widgets in the Widget

question 81

Multiple Choice

Assume there are 100 suppliers of widgets in the widget market.Half of these suppliers supply 35 widgets to the market,a quarter of these suppliers supply 40 widgets to the market,and a quarter of these suppliers supply 50 widgets to the market.What is the market supply for widgets?

• A) 100
• B) 125
• C) 400
• D) 4,000
• E) 1,750

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Definitions:

Interest Rate Effect

The impact that changing interest rates have on consumer spending and business investments in an economy, generally influencing economic activity.

Price Level

The mean value of prices for the full range of goods and services in the economy.

Consumption and Investment

Elements of economic activity where consumption represents spending by households on goods and services, while investment refers to spending on capital goods that will be used for future production.

Macroeconomic Equilibrium

A state in which aggregate supply equals aggregate demand in an economy, leading to a stable price level and full employment.