The Following Figure Shows the Demand and Supply Curves for USB

question 79

Multiple Choice

The following figure shows the demand and supply curves for USB flash drives at different price levels. D is the demand curve, and S₁ is the initial supply curve.

-Refer to the figure above.When the supply curve of flash drives is S₂ and the demand curve of flash drives is D,what is the surplus in the market when the price is $7?

• A) 0 units
• B) 10 units
• C) 20 units
• D) 40 units

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Definitions:

Variable Costs

Expenses that change in proportion to the level of production or business activity.

Sales Commissions

The payment made to sales personnel, often calculated as a percentage of the sales they generate, as a reward for their efforts in selling products or services.

Raw Materials

Basic materials that are used in the manufacturing process to produce goods or finished products.

Breakeven Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain for the business.