The Following Table Gives the Hypothetical Supply and Demand of Television

question 75

Multiple Choice

The following table gives the hypothetical supply and demand of television sets in Guatemala. Guatemala is a small country that is unable to affect world prices. The world price (free-trade price) is $300 per TV set. In the absence of trade, how many TV sets will Guatemala produce?

• A) 1,400
• B) 1,200
• C) 1,000
• D) 800

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Definitions:

Plastic Crash Dummies

Models made of plastic and other materials designed to simulate human physical responses in vehicle crash testing to improve safety.

Validity Effect

The phenomenon where a belief or a statement is more likely to be accepted as true the more it is repeated or encountered, regardless of its actual validity.

Exposure Effect

The psychological phenomenon where repeated exposure to a stimulus increases an individual's preference for that stimulus.

Contrast Effect

A psychological phenomenon wherein the perception or judgment of something is influenced by the comparison with something else, often leading to exaggeration of differences.