An Economist Models the Market for Rice by the Following

question 155

Multiple Choice

An economist models the market for rice by the following equations. Let p represent the price per bushel (in dollars) and y represent the number of bushels produced and sold (in millions) . Use the model for demand to determine at what point is the price so high that no rice is sold.

• A) When the price of rice is $8.42 per bushel.
• B) When the price of rice is $0.32 per bushel.
• C) When the price of rice is $221.58 per bushel.
• D) When the price of rice is $0.04 per bushel.
• E) When the price of rice is $5.32 per bushel.

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Definitions:

Offered by Firms

Describes the goods or services that companies make available to consumers in the marketplace.

Tuition

The fee that educational institutions charge for instruction and training, often paid per term or year.

Indirect Cost

Costs that are not directly accountable to a cost object (such as a particular project, facility, or product).

Direct Cost

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.