Refer to the Information Provided in Figure 20

question 134

Multiple Choice

Refer to the information provided in Figure 20.4 below to answer the questions that follow. Figure 20.4
-Refer to Figure 20.4.If the demand and supply of pounds are D1 and S1,the equilibrium is

• A)$2.50 per pound and the quantity is 400 pounds.
• B)$2.00 per pound and the quantity is 500 pounds.
• C)2 pounds per $ and the quantity is 500 pounds.
• D)$1.50 per pound and the quantity is 300 pounds.

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Definitions:

Market Price

The existing rate at which an asset or service may be acquired or disposed of on the market.

Utility Consumption

The enjoyment or satisfaction gained by using a good or service.

Factor Markets

Markets where resources, such as labor, capital, and land, are bought and sold.

Resource Allocation

The process of distributing available resources among various projects or business units to maximize the effectiveness and efficiency of utilization.