The Table Below Shows the Quantity Demanded (In Thousands) and Quantity

question 94

Multiple Choice

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-According to Table 20.5, the international equilibrium price of computers is:

• A)$2,000.
• B)$1,600.
• C)$1,800.
• D)$1,400.
• E)$1,200.

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Definitions:

Consumer Surplus

The disparity in the consumers' desired payment amount for a good or service and the actual expense they bear.

Natural Monopoly

A market condition where a single firm can supply a product or service at a lower cost than any potential competitor, often due to economies of scale.

Large Fixed Costs

Expenses that do not change in total regardless of changes in the volume of goods or services produced.

ATC

Average Total Cost, which is calculated by dividing the total cost of production by the quantity of output produced.