Consider a Market Characterized by the Following Inverse Demand and Supply

question 49

Multiple Choice

Consider a market characterized by the following inverse demand and supply functions: P_X = 10 − 2Q_X and P_X = 2 + 2Q_X. Compute the equilibrium price and quantity in this market.

• A) $24 and 24 units, respectively
• B) $4 and 4 units, respectively
• C) $2 and 6 units, respectively
• D) $6 and 2 units, respectively

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Definitions:

Incentive System

An incentive system is a business tool that uses rewards and penalties to motivate employees to achieve specific objectives and improve performance.

Employment Stability

The assurance of consistent work and income for employees, contributing to job satisfaction and loyalty.

Follow Demand

Adapting production and inventory levels to meet current demand trends to minimize surplus and shortages.

Keep Demand

Strategies or practices employed to maintain or increase the desire for products or services among consumers or clients.