Suppose That the Supply of Apples Can Be Represented by the Following

question 52

Multiple Choice

Suppose that the supply of apples can be represented by the following equation: $Q ^ { s } = 2 P + 500$ . Further suppose that the demand for apples can be represented by the following equation: $Q d =$ $900 - 3 P$ . Which of the following is the equilibrium price in the market for apples?

• A) 10
• B) 50
• C) 80
• D) 100

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Definitions:

Efficiency

The optimal use of resources to achieve the best possible outcome or output with minimal waste.

Equity

Equity refers to fairness or justice in the way people are treated and involves ensuring equal opportunities and rights for all individuals.

Benefits Principle

A theory in taxation where taxes are apportioned according to the benefits received by taxpayers; those who benefit more from government services, pay more taxes.

Federal Government

The national government of a federal country, which holds the authority over matters that affect the country as a whole.