The Interaction of Supply and Demand Explains

question 317

Multiple Choice

The interaction of supply and demand explains

• A) the prices of goods and services but not their quantities.
• B) the quantities of goods and services but not their prices.
• C) both the prices and the quantities of goods and services.
• D) neither the prices nor the quantities of goods and services.

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Definitions:

Total Utility

The total satisfaction or benefit received from consuming a particular quantity of a good or service.

Donuts

A sweet, fried or baked pastry, often circular with a hole in the middle, available in various flavors and toppings.

Day

A day is a unit of time equivalent to 24 hours or the period it takes for the Earth to complete one full rotation on its axis.

Marginal Utility

The increased happiness or advantage received from using one more unit of a good or service.