The Above Figure Shows the Market for Game Day T-Shirts

question 57

Multiple Choice

The above figure shows the market for game day t-shirts. If the price of t-shirts is $10, then

• A)there is a shortage and the price of t-shirts will rise.
• B)there is a shortage and the price of t-shirts will fall.
• C)there is a surplus and the price of t-shirts will fall.
• D)the market is in equilibrium.
• E)there is a surplus and the price of t-shirts will rise.

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Definitions:

Best-Case Scenario

The most optimistic prediction of how a situation could unfold in the future.

Earnings Before Taxes

A measure of a company’s financial performance that calculates profits before taxes are deducted.

Sales Price

The financial value assigned to a product or service available for purchase in the market.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor expenses.