Table 4-13 The Demand Schedule Below Pertains to Sandwiches Demanded Per Week

question 65

Multiple Choice

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose the following: • x = 2.
• The current price of a sandwich is $3.00.
• The market quantity supplied of sandwiches is 4.
• The slope of the supply curve is 2.
Then there is currently a

• A)shortage of 6 sandwiches, and the equilibrium price of a sandwich is less than $3.00.
• B)shortage of 6 sandwiches, and the equilibrium price of a sandwich is $5.00.
• C)surplus of 6 sandwiches, and the equilibrium price of a sandwich is less than $3.00.
• D)surplus of 6 sandwiches, and the equilibrium price of a sandwich is $5.00.

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Definitions:

Weekly Operating Profits

The profit a company makes from its operations in a week, excluding non-operational revenues and expenses.

Market Price

The current price at which a good or service can be bought or sold in a particular market.

Long Run

A period in economic analysis where all factors of production and costs are variable, allowing full adjustment to changes.

Weekly Operating Profits

Weekly operating profits describe the earnings a business generates from its normal operations over a one-week period, excluding any income from investments or other non-operational sources.