Suppose the Quantity Demanded for a Security Is BD =

question 53

Multiple Choice

Suppose the quantity demanded for a security is BD = 150 − 0.1b,
And the quantity supplied of the security is
BS = 50 + 0.1b,
Where b is the price of the security in dollars.The equilibrium price of the security is

• A)$50.
• B)$125.
• C)$250.
• D)$500.

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Definitions:

Sierra Club

An environmental organization that promotes the conservation of natural environments and influences public policy through advocacy and education.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.

Socially Optimal Price

A price point at which the social cost of producing a good or service is equal to the social benefit derived from its consumption, leading to an efficient allocation of resources.

Units

A standard measure or quantity used as a means of expressing or accounting for something, such as in production, sales, or comparison.