Suppose That the Demand and Supply Curves for a Good

question 133

Multiple Choice

Suppose that the demand and supply curves for a good are given by Q^D = 1,000/P and Q^S = 10P. What is happening in the market at a price of $20?

• A) There is an excess demand of 480 units.
• B) There is an excess demand of 150 units.
• C) There is an excess supply of 480 units.
• D) There is an excess supply of 150 units.

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Definitions:

Sanctions

Penalties imposed by governments or organizations on individuals, companies, or countries to encourage compliance with laws or regulations.

Maintaining Good Will

entails fostering positive relationships and perceptions among individuals or groups, often critical for successful long-term interactions or negotiations.

Undesirable Features

Aspects or characteristics of a situation, agreement, or product that are not favorable or appealing.

Attractive Features

Qualities or characteristics of a product, service, or proposition that make it appealing to potential buyers or partners.