A Market Can Be Described by the Equations Qd =

question 28

Multiple Choice

A market can be described by the equations Qd = 50 - 3P and Qs = 2P. What are the equilibrium price and quantity in this market?

• A) The equilibrium price is $20 and the equilibrium quantity is 10 units.
• B) The equilibrium price is $50 and the equilibrium quantity is 100 units.
• C) The equilibrium price is $30 and the equilibrium quantity is 10 units.
• D) The equilibrium price is $10 and the equilibrium quantity is 20 units.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Long-term Liabilities

Debts or obligations that are not due to be settled within the next 12 months from the balance sheet date.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan's balance.