Use the Following to Answer Questions

question 218

Multiple Choice

Use the following to answer questions:
Figure: Basic Supply and Demand
-(Figure: Basic Supply and Demand) In the diagram, which of the following statements is TRUE?

• A) The equilibrium price is $3, and the equilibrium quantity is 60 units.
• B) The equilibrium price is $4, and the equilibrium quantity is 60 units.
• C) The equilibrium price is $2, and the equilibrium quantity is 40 units.
• D) The equilibrium price is $3, and the equilibrium quantity is 50 units.

---

Definitions:

Fair Market Value

The price a willing buyer would pay a willing seller for property in an open and competitive market, where both parties have reasonable knowledge of the relevant facts.

Contract Validity

The legal enforceability of a contract, requiring it to meet certain established criteria like mutual consent, consideration, and legality of purpose.

Geographical Restriction

Limitations placed upon the area or region in which a business can operate or where products and services can be sold.

Restraint of Trade

Legal agreements or policies that restrict or limit competition or the freedom to conduct business in a certain market.