​The Following Graph Shows the Demand and Supply Curves of a Resource

question 79

Multiple Choice

​The following graph shows the demand and supply curves of a resource. The equilibrium price of the resource is _____. Figure 11.3

• A)$16
• B)$12
• C)$10
• D)less than $10
• E)more than $12 but less than $16

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Definitions:

Discount Rate

The interest rate charged by central banks on loans and advances to commercial banks and other financial institutions.

Reserve Requirements

Reserve requirements are central bank regulations that set the minimum amount of reserves that commercial banks must hold, either in their vaults or deposited with the central bank, as a percentage of their deposit liabilities.

Central Bank

An institution that manages a state's currency, money supply, and interest rates.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and maintenance of financial stability.