Assume the Demand Function for Scooters Is Given by Q_D

question 42

Multiple Choice

Assume the demand function for scooters is given by Q_D = 20,000 - 10P + 0.2I,where P = price of a scooter,and I = average income of consumers.Also,assume the supply function of scooters is given by Q_S = 20P.If the market for scooters is perfectly competitive,and the average income of consumers is $20,000,what are the equilibrium price and quantity in this market?

• A)The equilibrium price is $16,000,and 800 scooters are traded.
• B)The equilibrium price is $1,600,and 32,000 scooters are traded.
• C)The equilibrium price is $800,and 16,000 scooters are traded.
• D)The equilibrium price is $800,and 32,000 scooters are traded.

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Definitions:

Scapegoating

The practice of unfairly blaming an individual or group for problems or negative outcomes, often to divert attention from the real causes.

Implicit Association

The subconscious linking of two concepts or objects, which can influence attitudes, beliefs, and behaviors without the individual's awareness.

Other-Race Effect

A bias toward recognizing faces of the race one has the most exposure to, typically their own race.

Ingroup Bias

The inclination to prefer one's own group to other groups.