Consider a Market Where the Demand Curve Is Downward Sloping

question 64

Multiple Choice

Consider a market where the demand curve is downward sloping and the supply curve is upward sloping (so they are neither vertical nor horizontal) .If the consumers' willingness to pay for the hundredth unit and the seller's willingness to accept for the 175th unit are both $5.00,then ________.

• A) the equilibrium price is $5.00
• B) the equilibrium quantity is 100 units
• C) there is an excess supply of 75 units at the price of $5.00
• D) there is an excess demand of 75 units at the price of $5.00

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Definitions:

Carboniferous

A geologic period and system that occurred around 359 to 299 million years ago, known for its vast swamp forests and the formation of significant coal deposits.

Ordovician

A geological period, approximately 485 to 444 million years ago, marked by significant diversification of life, especially in marine environments.

Cretaceous

A geological period from about 145 to 66 million years ago, known for the dominance of dinosaurs and ending with their mass extinction.

Pleistocene

The geological epoch lasting from about 2.6 million to 11,700 years ago, characterized by the last period of significant ice ages.