Consider a Market Where the Demand Curve Is Downward Sloping

question 97

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 is $7.00 and the seller's willingness to accept for the hundredth unit is $10.00,then the equilibrium ________.

• A) quantity is less than 100 units
• B) quantity is more than 100 units
• C) price is less than $7.00
• D) price is more than $10.00

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Definitions:

FOMC

The Federal Open Market Committee, which is responsible for setting monetary policy in the United States, including interest rates and money supply targets.

Federal Reserve Board Governors

Members of the board that oversees the Federal Reserve System, responsible for setting monetary policy, including interest rates, in the United States.

Federal Reserve Board Of Governors

The governing body of the Federal Reserve System, responsible for overseeing the Federal Reserve banks and setting monetary policy.

Commodity Money

Currency that possesses inherent worth and serves functions beyond simply facilitating trade, like gold or silver.