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:

Interstate Commerce Commission

A regulatory agency in the United States established to oversee railroad rates and later expanded to other modes of transportation, until its operations were phased out in the late 20th century.

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A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets.

Employee Share Ownership Plans

Programs that enable employees to own a stake in the company they work for, fostering a sense of ownership and incentivizing performance.

Share Options

Are financial derivatives that give the holder the right, but not the obligation, to buy or sell shares of a company at a predetermined price within a specified timeframe.