The Following Equations Represent the Demand and Supply for Kumquats

question 130

Multiple Choice

The following equations represent the demand and supply for kumquats. Q_D = 60 - 3P
Q_S = -20 + 5P
What is the equilibrium price (P) and quantity (Q - in thousands) of kumquats?

• A)P = $5; Q = 20 thousand
• B)P = $30; Q = 5 thousand
• C)P = $20; Q = 10 thousand
• D)P = $10; Q = 30 thousand

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Definitions:

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

International Currency Markets

Markets where currencies are traded internationally, crucial for determining foreign exchange rates.

Dollar

The currency unit of the United States, used as a standard monetary unit in international trade.

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A decrease in the value of the U.S. dollar relative to other currencies in the global market.