Refer to the Figure Below

question 127

Multiple Choice

Refer to the figure below. If Mallory and Rick are the only two consumers in this market and the price of soda is $0.25 per can, then what will be the market demand for soda each week?

• A)60 cans
• B)70 cans
• C)90 cans
• D)130 cans

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Definitions:

Demand Shifts

Occur when external factors lead to a change in the amount of a product or service that consumers are willing and able to buy at a given price, resulting in the demand curve moving rightward or leftward.

New Equilibrium

The point at which market supply and demand balance each other, and, as a result, prices become stable following a disturbance.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, measured above the supply curve.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, reaching a state of balance where there are no surplus or shortage.