The Demand Function for Abalone Is Q = 30 -

question 41

Multiple Choice

The demand function for abalone is q = 30 - 9p and the supply function is q = 6p. Suddenly the yuppies discover abalone. The quantity demanded at every price doubles. The supply function, however, remains the same as before. What is the effect on the equilibrium price and quantity?

• A) The price doubles and the quantity remains constant.
• B) The quantity doubles and the price remains constant.
• C) Both price and quantity double.
• D) Both price and quantity increase but neither doubles.
• E) None of the above.

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Definitions:

Compelling Employment

Employment opportunities or offers that are highly attractive or persuasive, often because of excellent benefits, workplace culture, or career advancement possibilities.

Labour Market

A marketplace where employers find workers and workers find jobs; it is characterized by supply and demand for labor.

Globalisation

The worldwide interdependence of resource flows, product markets, and business competition.

Outsourcing

Is a decision to allow one or more of a company’s value chain activities to be performed by onshore independent specialist companies that focus all their skills and knowledge on just one kind of activity.