Exhibit 4-1 -If the Price of the Good Described in Exhibit 4-1

question 119

Multiple Choice

Exhibit 4-1

-If the price of the good described in Exhibit 4-1 is $1.50, then

• A)there is a shortage
• B)there is a surplus
• C)the market is in equilibrium
• D)the quantity supplied is 30 units
• E)the quantity demanded is 30 units

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Definitions:

Drug Trade

The illegal production, distribution, and sale of drugs that are subject to drug prohibition laws.

Equilibrium Price

The market price at which the supply of an item equals the demand for it, leading to a stable market condition.

Black Markets

A market that operates outside the legal system in which either illegal goods are sold or legal goods are sold at illegal prices or terms.

Black Markets

Illicit trade practices where goods or services are sold illegally, either because they are prohibited or to avoid taxation.