If the Demand for Oranges Is Written as Q =

question 107

Multiple Choice

If the demand for oranges is written as Q = 100 - 5p,then the inverse demand function is

• A) Q = 5p - 100.
• B) Q = 20 - .2p.
• C) p = 20 - 5Q.
• D) p = 20 - .2Q.

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Definitions:

Production Possibilities Curve

A visual diagram illustrating the highest potential production mixes of two products or services that an economy can reach when it uses all its resources in a completely efficient manner.

Stable Supply Curve

A situation in which the supply curve remains unchanged over time, indicating that the quantity supplied is not affected by changes in price.

Increasing Demand

A situation where the quantity of a good or service that consumers are willing and able to buy increases, often due to factors like rising incomes, changes in tastes, or lower prices of the product.

Allocative Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making at least one individual worse off.