Table 4-13 The Demand Schedule Below Pertains to Sandwiches Demanded Per Week

question 65

Multiple Choice

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose the following: • x = 2.
• The current price of a sandwich is $3.00.
• The market quantity supplied of sandwiches is 4.
• The slope of the supply curve is 2.
Then there is currently a

• A)shortage of 6 sandwiches, and the equilibrium price of a sandwich is less than $3.00.
• B)shortage of 6 sandwiches, and the equilibrium price of a sandwich is $5.00.
• C)surplus of 6 sandwiches, and the equilibrium price of a sandwich is less than $3.00.
• D)surplus of 6 sandwiches, and the equilibrium price of a sandwich is $5.00.

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by the forces of supply and demand.

Economic Profits

Profits calculated by subtracting both explicit (direct payments) and implicit (opportunity) costs from total revenues.

Market Price

The ongoing selling or buying rate for an asset or service in a certain market.

Satisfier Factors

Elements related to the nature of the job itself, such as achievement, recognition, and work itself, that lead to job satisfaction.