The Demand for Cars in a Certain Country Is Given

question 29

Multiple Choice

The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. Suppose the economy is closed. The equilibrium price of a car is ________ and equilibrium quantity is ________.

• A)$6,000; 14,000
• B)$8,000; 12,000
• C)$10,000; 10,000
• D)$12,000; 8,000

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Definitions:

Dollar Value

A measure of the worth of an item, service, or currency expressed in terms of the amount of money it can be exchanged for in U.S. dollars.

Mid East

Refers to the Middle East, a geographical region that encompasses Western Asia and parts of North Africa, known for its rich culture and historical significance.

Saddam Hussein

Former President of Iraq known for his leadership from 1979 to 2003, marked by oppressive rule, wars, and eventual trial and execution.

Undemocratic Regimes

Undemocratic regimes are governments that do not allow equal participation in political processes, often characterized by the absence of fair elections, limited civil liberties, and centralized control.