-Refer to the Above Information to Answer This Question

question 108

Multiple Choice

-Refer to the above information to answer this question.What is true if price is $45?

• A)Price will soon fall.
• B)There is a surplus of 40.
• C)The quantity supplied is 200.
• D)The quantity demanded is 80.
• E)There is a shortage of 40.

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Definitions:

Marginal Revenue

The incremental income obtained from the sale of one extra unit of a product or service.

Maximize Profit

The process of adjusting inputs and outputs in order to achieve the highest possible return on investment.

Total Revenue

The total income generated by a firm from its sales activity, calculated as the unit price of a good times the quantity of goods sold.

Profit Increase

The rise in the difference between a company's revenue and its expenses, indicating improved financial performance.