Regan Grows Flowers and Makes Vases

question 56

Multiple Choice

Regan grows flowers and makes vases.Jayson also grows flowers and makes vases,but Regan is better at producing both.Who has an absolute or comparative advantage in what activity

• A)Regan has an absolute advantage in both activities.
• B)Jayson has an absolute advantage in both activities.
• C)Regan has a comparative advantage in growing flowers.
• D)Jayson has a comparative advantage in growing flowers.

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Definitions:

Surplus

Situation in which the quantity supplied exceeds the quantity demanded.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where supply equals demand.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price over a given period of time.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price within a specific time period.