Suppose the Demand and Supply Curves in the Market for Apples

question 76

Multiple Choice

Suppose the demand and supply curves in the market for apples have the following functional form: Q_D = 250 - 4p and Q_S = 10 + p.If the prevailing market price is 40,then

• A)the market is clearing.
• B)the market exhibits an excess supply of 50 units.
• C)the market exhibits an excess supply of 40 units.
• D)the market exhibits an excess demand of 50 units.
• E)the market exhibits an excess demand of 40 units.

---

Definitions:

Statute of Limitations

The statute of limitations is a law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to standardize practices across state lines.

Contractually-agreed-upon

Refers to terms, conditions, or actions that the parties to a contract have expressly decided upon and recorded in the contract.

Breach of Contract

An act of failing to fulfill obligations or terms agreed upon in a contract, which can result in legal action.