The Figure Given Below Shows the Demand Curves [D₁ and

question 28

Multiple Choice

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital. Figure 16.1 In Figure 16.1, if the price set in the market is P₃ when the demand curve is D₁, then:

• A)the market will be in equilibrium.
• B)there will be an excess demand for capital of the amount Q₄ - Q₁.
• C)there will be a shortage of capital in the market by the amount Q₄ - Q₂.
• D)there will be a surplus of capital in the market by the amount Q₃ - Q₁.
• E)there will be a surplus of capital in the market by the amount Q₃ - Q₂.

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Definitions:

Executory Conditions

Provisions in a contract that require certain actions to be performed before an obligation becomes absolute.

Concurrent Conditions

In a contract, terms under which each party’s performance is conditioned on the performance of the other; occur only when the parties are required to perform for each other simultaneously.

Express

Implies clear and direct communication or conveyance of an idea, intention, or item without any ambiguity.

Executory

A term applied to a contract in which not all of the terms have been fully performed.