Consider the Global Market for Some Mineral,X

question 54

Multiple Choice

Consider the global market for some mineral,X.In January,2014,the equilibrium price and quantity were P = $27 per unit and Q = 140 million units.In January,2016,the equilibrium price and quantity were P = $27 per unit and Q = 175 million units.Which of the following is the best possible explanation for this change in market equilibrium?

• A)There has been a simultaneous increase in demand for,and increase in supply of,mineral X.
• B)There has been an increase in demand for mineral X.
• C)There has been an increase in quantity demanded for mineral X.
• D)There has been an increase in supply of mineral X.
• E)There has been an increase in quantity supplied of mineral X.

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Definitions:

Credit Sale

Transactions where goods or services are sold and payment is received at a later date.

Monthly Interest Rate

The interest rate applied to a loan or credit balance on a monthly basis.

Variable Cost

Expenses that vary in relation to the amount of product or service generated by a company.

Sales Price

The final amount of money charged for a product or service, or the value that consumers are willing to pay.