Suppose the Equilibrium Price of Oranges Is $1

question 101

True/False

Suppose the equilibrium price of oranges is $1.25 per pound. If the current price is $1.50, an excess demand will exist.

---

Definitions:

Two-part Tariff

A pricing strategy that includes a fixed fee plus a variable charge based on usage or consumption of a product or service.

Marginal Cost

The expense associated with manufacturing an extra unit of a product.

Parking Fee

A charge imposed for the use of parking facilities, often varying based on location, time duration, and parking amenities.

Basketball Games

Competitive sports events involving two teams whose goal is to score points by throwing a ball through the opposing team's basketball hoop.