-Using the Data in the Table Above,at the Price of $80

question 165

Multiple Choice

-Using the data in the table above,at the price of $80 a phone,

• A) a shortage of 25,000 cellular telephones occurs.
• B) a surplus of 80,000 cellular telephones occurs.
• C) a surplus of 25,000 cellular telephones occurs.
• D) a shortage of 55,000 cellular telephones occurs.
• E) the market is in equilibrium.

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Definitions:

Probability Distribution

A mathematical function outlining every potential value and associated probabilities a random variable may assume in a specified interval.

Return on Stock

The gain or loss on a stock investment, expressed as a percentage of the investment’s initial cost.

Optimal Risky Portfolio

A portfolio that offers the highest expected return for a given level of risk, according to modern portfolio theory.

Risk Free Rate

The theoretical rate of return on an investment with no risk of financial loss, often represented by government bond yields.