In the Market for Good X, Demand Is Q^D =

question 41

Multiple Choice

In the market for good X, demand is Q^D = 6,000 - 0.8P and supply is Q^S = 0.4P - 300. Suppose that an increase in consumer income makes consumers willing to pay $500 more per unit of good X. Also, a technological breakthrough in production makes firms willing to sell good X for $250 less per unit. What is the new equilibrium price?

• A) $1,200
• B) $2,000
• C) $4,800
• D) $5,500

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Definitions:

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to check that debits equal credits in the double-entry accounting system.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Accounts Payable

The amount a company owes to suppliers or vendors for goods or services received but not yet paid for.

Common Stock

Equity securities that represent ownership interests in a corporation, providing voting rights and potential dividends to shareholders.