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:

Consumption

The use of goods and services by households, constituting one of the major components of gross domestic product (GDP).

Planned Investment

Expenditures that businesses intend to make for the purposes of capital improvements, equipment, or inventory.

Imports

Goods and services purchased from foreign producers by a country’s residents.

U.S. Income

This term describes the total national income earned by residents and businesses within the United States, comprising wages, rents, interest, and profits.