There Are Two Sellers in the DVD Market,Wen and Ahmed

question 24

Multiple Choice

There are two sellers in the DVD market,Wen and Ahmed.If the market price were $5 per DVD,Wen would be willing to sell 10 DVDs and Ahmed would want to sell 15 DVDs.If the market price were to rise to $7,then:

• A) we can confidently say that market quantity supplied is at least 25 DVDs.
• B) the effect on market supply is unknown because we don't have the full graphs for these two sellers.
• C) the market quantity supplied must be less than 25.
• D) the market quantity supplied must be between 10 and 15 DVDs.

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Definitions:

Wage Rates

The standard amount of pay given to workers per unit of time, which can vary based on job, location, experience, and skill level.

Payrolls

The total amount of wages and salaries paid by a business or organization to its employees, usually recorded over a specific period of time.

Elasticity of Resource Supply

A measure of how responsive the quantity supplied of a resource is to a change in price.

Elasticity of Product Demand

The degree to which the demand for a product changes in response to a change in its price.