Use the Following to Answer Questions

question 457

Multiple Choice

Use the following to answer questions :
Scenario: Gizmovia II
The Republic of Gizmovia wants to maintain the exchange rate of its currency, the gizmo, at $0.50, but the current exchange rate for the gizmo is $0.75.
-(Scenario: Gizmovia II) Look at the scenario Gizmovia II. At the target rate of $0.50:

• A)the quantity demanded of gizmos equals the quantity supplied.
• B)there is a surplus of gizmos.
• C)there is a shortage of gizmos.
• D)the quantity demanded of gizmos is greater than the quantity supplied.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Phantom Tickets

Tickets that are sold for an event that may have already sold out or for seats that do not exist, often associated with fraud or scams.

Willingness to Pay

The highest price a person is willing to pay for a product or service, indicating how much they value it.

Basketball Sneakers

Shoes specifically designed and constructed for playing basketball, offering support, traction, and durability.