Use the Following to Answer Questions

question 64

Multiple Choice

Use the following to answer questions:
Figure: Demand and Supply
-(Figure: Demand and Supply) Refer to the figure. Which statement is TRUE?

• A) The gains from trade are maximized at 20 units of output.
• B) At 16 units of output, there are unexploited gains from trade.
• C) Buyers are willing to pay $20 for the 16th unit of output and it costs sellers $60 to produce that unit.
• D) A free market is likely to produce less than 12 units of output.

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Definitions:

ATP

Adenosine Triphosphate, a molecule that carries energy within cells, facilitating various cellular processes.

Alcoholic Fermentation

A biological process in which sugars such as glucose, fructose, and sucrose are converted into cellular energy and thereby produce ethanol and carbon dioxide as byproducts.

Ethanol

Ethanol is a volatile, flammable, colorless liquid commonly used as a fuel additive and in alcoholic beverages.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, absorbed by plants in photosynthesis.