Use the Following Information to Answer the Following Questions

question 72

Multiple Choice

Use the following information to answer the following questions.
Market for a new hardcover book:
Demand: Q_d = 325 - 8P
Supply: Q_s = -60 + 3P
-What would be the quantity supplied if a price floor is set at $20?

• A) 90
• B) 45
• C) 265
• D) 165
• E) 305

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Definitions:

Manufacturing Firm

A business that uses components, parts, or raw materials to make a finished good.

Marginal Cost

The cost of producing one additional unit of a product or service, used in economics to determine the optimum production level.

Output

The quantity of goods or services produced by a firm, sector, or economy.

Total Variable Costs (TVC)

TVC refer to the costs that vary directly with the level of output produced, including expenses such as materials and labor.