The Table Given Below Reports the Quantity of Bread Loaves

question 60

Multiple Choice

The table given below reports the quantity of bread loaves demanded and supplied at different per unit prices.Table 3.3

-According to Table 3.3, equilibrium in the market for bread occurs at the price of:

• A)$2 per unit
• B)$3 per unit
• C)$4 per unit
• D)$4.5 per unit
• E)$1.5 per unit

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Definitions:

Comparative Advantage

The ability of an individual or group to produce a good or service at a lower opportunity cost than others, leading to more efficient trade possibilities.

Production Possibility

A graph showing the highest possible production levels of two items, using a specific combination of resources and various factors.

Opportunity Costs

Making a choice results in the loss of potential profit that could have been earned from choosing differently.

Increasing Opportunity

In economic terms, refers to the increasing cost associated with producing additional units of a good, implying that producing more of one good requires sacrificing increasingly larger amounts of another good.