Figure 3-6 -Refer to Figure 3-6.The Figure Above Represents the Market for the Market

question 77

Multiple Choice

Figure 3-6
-Refer to Figure 3-6.The figure above represents the market for coffee grinders.Assume that the price of coffee grinders is $50.At this price

• A)the quantity supplied exceeds the quantity supplied by 100.The price will eventually fall to $25 where quantity demanded will equal quantity supplied.
• B)the supply exceeds the demand by 90.Some producers will have an incentive to offer to sell coffee grinders at a lower price.
• C)there is a surplus equal to 90 coffee grinders that will be eliminated when the price falls to $25.
• D)there is a surplus equal to 90 coffee grinders and the price of coffee grinders will fall until demand is equal to supply.

---

Definitions:

Hotel Chains

A series of hotels under the same brand or management, offering standardized accommodations and services across different locations.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, representing a measure of producer profitability.

Single-Price Monopoly

A market structure where a monopoly exists and sells a product for the same price to all customers without discrimination.

Pay-per-view

A service through which consumers can pay to watch a particular show, event, or movie as a one-time purchase.