A Market Can Be Described by the Equations Q_d =

question 87

Multiple Choice

A market can be described by the equations Q_d = 50 - 3P and Q_s = 2P. What are the equilibrium price and quantity in this market?

• A) The equilibrium price is $20 and the equilibrium quantity is 10 units.
• B) The equilibrium price is $50 and the equilibrium quantity is 100 units.
• C) The equilibrium price is $30 and the equilibrium quantity is 10 units.
• D) The equilibrium price is $10 and the equilibrium quantity is 20 units.

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Definitions:

Delay Gratification

The ability to resist the temptation for an immediate reward and wait for a later reward.

Externality Hypothesis

A theory suggesting that individuals attribute their own behavior to external factors and circumstances beyond their control.

Homeostasis

The regulatory process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.

Overjustification Effect

The phenomenon where providing excessive external rewards for an already internally rewarding activity leads to a decrease in intrinsic motivation.