Suppose the Demand and Supply Curves for Units of University

question 59

Multiple Choice

Suppose the demand and supply curves for units of university credits are given by
Q^D = 5,000 - P
Q^S = -1,000 + 4P
Where Q^D is the quantity of credits demanded, Q^S is the quantity supplied, and P is the price in dollars for each unit. The producer surplus at the equilibrium price is ____.

• A) $1,805,000
• B) $3,610,000
• C) $4,560,000
• D) $7,220,000

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Definitions:

Endangered Species

Organisms at risk of extinction across much of their natural range due to environmental changes or human activities.

Extinct

A term used to describe a species that no longer exists anywhere on Earth.

Genetic Traits

Characteristics or attributes of an organism determined by its genetic makeup.

Critical Population Density

The threshold of population size beyond which a specific area's resources could not sustainably support life, leading to environmental degradation or population decline.