An Economist Models the Market for Rice by the Following

question 37

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) . Find the best approximation for the equilibrium price.

• A) The equilibrium price is $1.23 per bushel.
• B) The equilibrium price is $5.86 per bushel.
• C) The equilibrium price is $3.97 per bushel.
• D) The equilibrium price is $154.21 per bushel.
• E) The equilibrium price is $2.58 per bushel.

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Definitions:

Pareto Optimal

A situation in economics where resources are allocated in the most efficient manner, making it impossible to reallocate without making at least one individual worse off.

Trades

The action of buying and selling goods and services, which can occur domestically within a country or internationally between countries.

Societal Members

Individuals who constitute a society, participating in its culture, norms, and economic activities.

Perfectly Competitive Market

A market structure characterized by many buyers and sellers, freedom of entry and exit, and a homogeneous product, leading to efficient pricing.