Suppose a Negatively Sloped Demand Curve and a Positively Sloped

question 80

Multiple Choice

Suppose a negatively sloped demand curve and a positively sloped supply curve intersect at a price and quantity combination of $100 and 600 units of the good.But suppose that producers actually produce and sell 610 units.What can we correctly say about market efficiency in this case?

• A)The value placed on the final 10 units of the good by consumers exceeds the additional costs associated with their production - this market is not efficient.
• B)The production and consumption of the additional 10 units of the good increases total economic surplus and increases market efficiency.
• C)This market is efficient because economic surplus is maximized as production and consumption increase simultaneously.
• D)This market is not efficient because quantity demanded for the good exceeds quantity supplied.
• E)The value placed on the final 10 units of the good by consumers is less than the additional costs associated with their production - this market is not efficient.

---

Definitions:

Performance Evaluation Bias

The presence of subjective judgments or prejudices that unfairly influence the assessment of an employee's performance.

Frame-Of-Reference Training

A training method that helps individuals understand and evaluate their performance or behaviors using a common standard or perspective.

Categorization Skills

The ability to organize, sort, and classify objects, information, or ideas into predefined categories based on set criteria.

General Goals

Broad objectives that an individual or organization aims to achieve, typically lacking specific details.