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

question 138

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 are the equilibrium price and equilibrium quantity in the milk market?

• A) ?$0.70 per quart and 200 quarts of milk.
• B) ?$0.60 per quart and 100 quarts of milk.
• C) ?$0.50 per quart and 100 quarts of milk.
• D) ?$0.40 per quart and 60 quarts of milk.
• E) ?$0.30 per quart and 20 quarts of milk.

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Definitions:

Limited Liability

A legal structure that limits the personal financial responsibility of shareholders for the debts or actions of a corporation to the amount they invested.

Capital Acquisition

The process of acquiring capital assets, which are resources such as machinery, tools, or buildings, used to produce goods or services.

MPC

Marginal Propensity to Consume, which is the fraction of an additional amount of income that is spent on consumption.

Corporation's Capitalization

The total value of a corporation's issued shares of stock, bonds, and long-term debt, reflecting the market's assessment of its total worth.