What Is the Most Likely Reason That Your Instructor Does

question 34

Multiple Choice

What is the most likely reason that your instructor does not have a demand for a top-of-the-line BMW?

• A)He or she does not wish to own such an expensive car.
• B)He or she does not want to own a German-made car.
• C)He or she would prefer to own no car at all.
• D)He or she cannot afford to own such an expensive car.

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Definitions:

Demand Equation

A mathematical representation of the relationship between the quantity of a good consumers are willing and able to buy and the good's price.

Supply Equation

An economic formula that represents the relationship between the quantity of a good supplied by producers and the price of the good.

Price Floor

A minimum price set by the government for certain goods and services, intended to prevent prices from dropping too low.

Shortage/Surplus

A situation in the market where the amount of a product that consumers want to buy is greater than the amount available (resulting in a shortage), or the available amount is more than what consumers want to purchase (leading to a surplus).