Answer the Question on the Basis of the Given Supply

question 233

Multiple Choice

Answer the question on the basis of the given supply and demand data for wheat. Equilibrium price will be

• A) $4.
• B) $3.
• C) $2.
• D) $1.

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Definitions:

Price Elasticity

A measure of how the quantity demanded or supplied of a good changes in response to a change in its price, indicating the sensitivity of consumers or producers to price changes.

Elastic

Describing a situation where the demand or supply for a product responds significantly to changes in price.

OPEC

The Organization of the Petroleum Exporting Countries, an intergovernmental organization of 13 oil-producing nations that collaborate to manage the supply and set the price of oil.

Elastic

Describes a situation where the quantity demanded or supplied of a good or service significantly changes in response to a change in price.