Suppose That the Demand Curve for a Good Is Given

question 155

Multiple Choice

Suppose that the demand curve for a good is given by Q_D = 60 - 0.5P_D,while the supply curve for the good is given by Q_S = 20 + 0.5P_S.If the price in this market is currently equal to 30,then the quantity demanded is ______ and the quantity supplied is _____.

• A) 60;20
• B) 35;45
• C) 45;35
• D) 20;60
• E) 40;40

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Definitions:

Shifts

refers to movements or changes in economic indicators, demand/supply curves, or other economic paradigms, often due to external factors.

Economies of Scale

The cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Selling Below Cost

The practice of offering goods or services for sale at a price that is less than the total cost to produce and sell them.

Merchandise Trade Deficits

A situation where a country's value of imports of physical goods exceeds the value of its exports.