There Are Three Consumers in the Market for Playing Cards

question 57

Multiple Choice

There are three consumers in the market for playing cards: Don, John, and Ron.At a price of $2 per pack, the quantities demanded by each are 3, 2, and 1, respectively.At a price of $1.50 per pack, the quantities demanded by each are 4, 5, and 3, respectively.Which of the following is true?

• A)The market demand curve for playing cards does not obey the law of demand.
• B)The price decrease causes the quantity demanded in this market to increase by 6.
• C)The price decrease causes John's demand curve to shift the most.
• D)At a price of $1 per pack, the quantity demanded in this market must be 20.
• E)Don's behavior does not obey the law of demand.

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Definitions:

Oligopoly

A market structure characterized by a small number of firms controlling a large portion of the market share, leading to limited competition.

Long-run Equilibrium

A state in which all factors of production and costs are variable, and all firms in an industry are making normal profit, resulting in market stability over time.

Average Total Cost

The total cost of production (fixed and variable costs) divided by the total quantity of output produced.

Profit-maximizing Price

The price at which a firm can sell its product to maximize its profit, determined by market demand and production costs.