For the Pair of Supply-And-Demand Equations, Where X Represents the Quantity

question 12

Multiple Choice

For the pair of supply-and-demand equations, where x represents the quantity demanded in units of 1,000 and p is the unit price in dollars, find the equilibrium quantity and the equilibrium price. p = - 0.5x + 11.5 and p = 0.25x + 3.25

• A) equilibrium quantity 11,000 units; equilibrium price $6
• B) equilibrium quantity 110,000 units; equilibrium price $6
• C) equilibrium quantity 11,000 units; equilibrium price $5
• D) equilibrium quantity 110,000 units; equilibrium price $5

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Definitions:

Borrowing

The act of obtaining funds from a lender under the agreement to repay with interest.

Par Value

A nominal value assigned to a security, such as a share of stock, representing the minimum price at which the security can be issued.

Premium

An amount paid in addition to the standard or expected cost, often for insurance coverage or higher quality goods and services.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's equity shares at certain times during the bond's life, usually at the discretion of the bondholder.