Exhibit 3-6 Milk Market ​
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-???In Exhibit 3-6, Which of the Following Is

question 115

Multiple Choice

Exhibit 3-6 Milk market $$\begin{array} { | c | c | c | } \hline \text { Price per Quart } & \begin{array} { c } \text { Quantity Demanded } \\\text { (Quarts per week) }\end{array} & \begin{array} { c } \text { Quantity Supplied } \\\text { (Quarts per week) }\end{array} \\\hline 0.70 & 20 & 180 \\0.60 & 60 & 140 \\0.50 & 100 & 100 \\0.40 & 140 & 60 \\0.30 & 180 & 20 \\\hline\end{array}$$ ​
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-???In Exhibit 3-6, which of the following is true about the milk market?

• A) ?At price 0.60 there is an excess demand of milk.
• B) ?At price 0.40 there is an excess supply of milk.
• C) ?At price 0.30 there is an excess supply of milk.
• D) ?At price 0.50 there is an excess demand of milk.
• E) ?At price 0.70 there is an excess supply of milk.

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Definitions:

Absolute Advantage

A term used in international trade theory to describe the ability of a country to produce a good more efficiently than another country.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than others, leading to more efficient trade patterns.

Specialize

To specialize means focusing on a narrow area of knowledge or skill within a wider field, aiming to become an expert or highly skilled in that specific area.

Opportunity Cost

Overlooking potential gains available from different alternatives by settling on one choice.