The Demand and Supply Schedules for a Hypothetical Canadian Market

question 24

Multiple Choice

The demand and supply schedules for a hypothetical Canadian market for barley are given below:
TABLE 3-3
-Refer to Table 3-3.If the price in this market was $100 per tonne,then the amount of barley actually purchased would be ________ million tonnes.

• A)70
• B)-70
• C)670
• D)300
• E)370

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Definitions:

Perfect Price Discrimination

A pricing strategy where a seller charges each buyer their maximum willingness to pay, extracting all the consumer surplus.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

Third-Degree Price Discrimination

Practice of dividing consumers into two or more groups.

Price Elasticities

Measures of how the quantity demanded or supplied of a good responds to a change in its price.