The Figure Given Below Represents the Equilibrium Price and Output

question 85

Multiple Choice

The figure given below represents the equilibrium price and output in the market for restaurant meals and delivery meals.
Figure 4.1

-Refer to Figure 4.1. If the price in the Delivery Meals market remains at $10 but demand shifts to D2 which of the following situations will be observed?

• A) People would be willing and able to purchase 75 units while only 60 units would be available.
• B) People would be willing and able to purchase only 60 units while 75 units would be available.
• C) People would be willing and able to purchase 75 units while only 50 units would be available.
• D) People would be willing and able to purchase 75 units while only 25 units would be available.
• E) People would be willing and able to purchase 50 units and producers would supply exactly 50 units.

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Definitions:

Efficiency

The ability of an entity or system to achieve its goals with the least waste of time, effort, or material resources.

Market Prices

The current value at which an asset or service can be bought or sold in a competitive marketplace.

Historical Information

Data regarding past events, performance, and decisions in a company or market, used for research, analysis, and strategic planning.

Risk Premium

The additional return expected by an investor for taking on a higher level of risk compared to a risk-free investment.