Reference: Ref 4-1 (Figure: Equilibrium) Refer to the Figure

question 5

Multiple Choice

Reference: Ref 4-1 (Figure: Equilibrium) Refer to the figure. The equilibrium price (in $) is:

• A) 8.
• B) 10.
• C) 16.
• D) 12.

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Definitions:

Most Elastic

Refers to the responsiveness of demand or supply to changes in price or income, with "most elastic" indicating the greatest sensitivity.

Quantity Demanded

The sum total of a service or good that individuals are interested in buying and can afford at an established price.

Price

The monetary contribution expected, required, or made for acquiring something.

Most Inelastic

Describes goods or services with a demand that is least responsive to price changes; price changes have little effect on the quantity demanded.