The Following Two Graphs Depict the Equilibrium Price of a Pound

question 134

Multiple Choice

The following two graphs depict the equilibrium price of a pound of flax seed in Kentucky and West Virginia, respectively. Assume the type and quality of the flax seed being sold in the two states are identical. Further, assume flax seed sellers incur zero costs to transport flax seed between the two states and that there are no other barriers to trade. Use these graphs to answer the next questions.

-Suppose the price of a pound of flax seed is currently $1.20 in both Kentucky and West Virginia. Further, suppose there is a decrease in demand for flax seed in Kentucky but not in West Virginia. Before flax seed sellers are able to adjust the relative quantity of flax seed supplied in the two states, the decrease in demand causes the equilibrium price of a pound of flax seed in Kentucky to change by $0.20. The law of one price suggests that the price of a pound of flax seed be ________ in West Virginia after sellers adjust the relative quantity of flax seed supplied in the two states.

• A) $1.00
• B) between $1.20 and $1.00
• C) between $1.00 and $0.80
• D) less than $0.80
• E) higher than $1.20

Distinguish between prokaryotic and eukaryotic organisms and their characteristics.

Understand the diversity of life and the criteria for classifying organisms into specific taxa.

Identify the roles of producers, consumers, and decomposers within ecosystems.

Differentiate between independent and dependent variables in scientific research.

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Definitions:

Nonsales Situation

A context or scenario in business interactions that does not involve the direct selling of products or services.

Persuasive Business Messages

Written or verbal communication aimed at influencing the attitudes, beliefs, or behaviors of specific business audiences.

Direct Messages

Private communications between individuals or small groups, facilitated through digital platforms or messaging apps.

AIDA Plan

A marketing strategy model that stands for Attention, Interest, Desire, and Action, used to engage consumers and guide them through the buying process.