Five Hundred Units of Good X Are Currently Bought and Sold.The

question 171

Multiple Choice

Five hundred units of good x are currently bought and sold.The marginal buyer is willing to pay $40 for the 500ᵗʰ unit,and the cost to the marginal seller is $35 for the 500ᵗʰ unit.We know that

• A) the equilibrium price of good x is somewhere between $35 and $40.
• B) the equilibrium quantity of good x exceeds 500 units.
• C) 500 units is not an efficient quantity of good x.
• D) All of the above are correct.

---

Definitions:

Cue Overload

A principle of memory that states a retrieval cue will be most effective when it is highly distinctive and not related to any other target memories.

Distinctive

Having a quality or characteristic that makes something easily identifiable and sets it apart from others.

Mood-dependent Memory Effect

The phenomenon where an individual's current mood affects the recall of memories congruent with that mood.

State-Dependent Learning

The phenomenon that recall is easier when the pharmacological state of the person at recall matches his or her pharmacological state during encoding.