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.

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Definitions:

Testes

The male reproductive organs that produce sperm and male sex hormones, primarily testosterone.

Sexual Responses

The physical and emotional reactions to sexual stimulation, often following a predictable cycle.

Physiological Processes

The functions and activities that occur within living organisms to sustain life, including respiration, digestion, and reproduction.

Ejaculation

The act of discharging semen from the body, typically occurring at the climax of sexual excitement.