Table 4-9 The Demand Schedule Below Pertains to Sandwiches Demanded Per Week

question 281

Multiple Choice

Table 4-9
The demand schedule below pertains to sandwiches demanded per week.

-Refer to Table 4-9.Suppose Harry,Darby,and Jake are the only demanders of sandwiches.Also suppose the following: • x = 2.
• The current price of a sandwich is $3.00.
• The market quantity supplied of sandwiches is 5.
• The slope of the supply curve is 1.
Then there is currently a

• A) shortage of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00.
• B) shortage of 5 sandwiches, and the equilibrium price of a sandwich is $5.00.
• C) surplus of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00.
• D) surplus of 5 sandwiches, and the equilibrium price of a sandwich is $5.00.

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Definitions:

Lorenz Curve

A graphical representation used to illustrate the distribution of income or wealth within a society, showing the proportion of the total income earned by any given percentage of the population.

Tax

Mandatory financial contributions imposed by governments on individuals, corporations, and other entities to fund public expenditure.

Upper Middle Class

A socioeconomic group that is above the middle class, often characterized by higher education, professional employment, and above-average income.

Lorenz Curve

A graphical representation of income or wealth distribution within a population, often used to illustrate economic inequality.