Suppose That the Demand Curve for a Good Is Given

question 74

Multiple Choice

Suppose that the demand curve for a good is given by Q_D = 100 - 2P_D,while the supply curve for the good is given by Q_S = 60 + 2P_S.If the price in this market is currently equal to 20,then the quantity demanded is ______ and the quantity supplied is _____.

• A) 80;80
• B) 100;60
• C) 20;140
• D) 60;100
• E) 140;20

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Definitions:

Average Product

This metric calculates the output produced per unit of input, such as labor or capital, used in the production process, often used to measure productivity levels.

Law of Diminishing Returns

A principle stating that as more units of a variable input are added to a fixed input, the additional output produced by each new unit will eventually decrease.

Plant Size

The scale or capacity of a factory or production facility, which can affect production efficiency, costs, and the ability to meet demand.

Short Run

A period in economics during which the quantities of at least one input, such as plant size, cannot be changed.