Figure 4-20 -Refer to Figure 4-20.If the Price Is $25,then There Would

question 105

Multiple Choice

Figure 4-20
-Refer to Figure 4-20.If the price is $25,then there would be an excess

• A)supply of 100 units,and price would fall.
• B)supply of 300 units,and price would fall.
• C)demand of 100 units,and price would fall.
• D)demand of 300 units,and price would fall.

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Definitions:

Marginal Cost

The expense associated with the production of an extra single unit of a good or service.

Perfectly Competitive

A market structure characterized by many buyers and sellers, free entry and exit, homogeneous products, and perfect information among consumers and producers.

Perfect Competitor

A theoretical market structure characterized by many buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to perfect information and no control over prices.

Short Run

In economics, a period in which at least one input, such as plant size, cannot be changed; distinct from the long run where all inputs can be varied.