Table 33 -Refer to Table 3

question 14

Multiple Choice

Table 3.3
$\begin{array}{|l|c|}\hline \text { Demand } & \text { Supply } \\\hline P=80-Q D & P=50+1 / 2 Q S \\\hline Q D=80-P & Q S=2 P-100\\\hline\end{array}$
-Refer to Table 3.3.The equations above describe the demand and supply for Chef Ernie's Sushi-on-a-Stick.The equilibrium price and quantity for Chef Ernie's sushi are $60 and 20 thousand units.What is the value of economic surplus in this market?

• A)$300 thousand
• B)$600 thousand
• C)$1,200 thousand
• D)$1,600 thousand

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Definitions:

Profit-Maximizing

The process or strategy by which a firm adjusts its production to achieve the highest possible profit from its operations.

Interest Rate

The cost of borrowing money, expressed as a percentage of the total amount loaned, or the return on investment.

Investment Undertaken

The commitment of resources such as capital, time, or effort to a project or asset with the expectation of future economic benefits.

Profit-Maximizing

The method through which a company identifies the pricing and production quantity that maximizes its profits.