Assume That in the Market for Bottled Water, the Market

question 33

Multiple Choice

Assume that in the market for bottled water, the market supply is Q_S = 14 + 20P and the market demand is Q_D = 74 - 10P. This means that the equilibrium quantity is

• A) 2
• B) 54
• C) 6
• D) none of the above

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Definitions:

Cost of Merchandise Sold

The direct costs attributable to goods sold by a company, including the purchase price of merchandise, freight, and handling charges, less any discounts received.

Retail Business

A business entity that sells goods or services directly to consumers.

Service Business

A business that provides intangible products or services to customers.

Gross Profit

The difference between sales and the cost of goods sold, representing the profit from buying and selling goods before other expenses are taken out.