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:

Budget Constraint

A financial limit that represents the combination of goods and services a consumer can purchase with their available income.

Consumer's Income

The total amount of income earned by an individual or household from various sources, influencing their purchasing power and demand for goods and services.

Price of a Book

The amount of money charged for a book, determined by factors like publishing costs, author royalties, and market demands.

Budget Constraint

A restriction on the possible combinations of goods and services an individual can afford to buy given their income and the prices of the goods.