The Figure Below Shows the Demand (D)and Supply (S)curves of Cocoa

question 6

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S. Figure 21.4 According to Figure 21.4, the no-trade equilibrium price and quantity of cocoa in the U.S.market are:

• A)$8 and 150 pounds.
• B)$10 and 250 pounds.
• C)$4 and 200 pounds.
• D)$10 and 200 pounds.
• E)$6 and 300 pounds.

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Definitions:

Just-In-Time

A management strategy that aligns raw-material orders from suppliers directly with production schedules to reduce inventory costs.

Insurable Interest

A stake or a legal right in the preservation of an item, person, or property that allows an individual or entity to obtain insurance coverage against loss or damage.

Supply Stoppages

Interruptions or halts in the provision or delivery of goods and services, often due to disputes, logistics issues, or external factors.

Salvage

The act of rescuing a ship, its crew, and cargo from peril at sea, often entailing the recovery of parts or property from damage or destruction.