If a Supply Curve Goes Through the Point P =

question 12

Multiple Choice

If a supply curve goes through the point P = $10 and = 320,then

• A)$10 is the highest price that will induce firms to supply 320 units.
• B)$10 is the lowest price that will induce firms to supply 320 units.
• C)at a price higher than $10 there will be a surplus.
• D)at a price lower than $10 there will be a shortage.
• E)both c and d

Recognize the scarcity of resources and the importance of economizing behavior.

Learn that no good or service is entirely free; every choice involves tradeoffs.

Understand how rational decisions are made by weighing marginal benefits against marginal costs.

Grasp the impact of incentives on individual and economic choices.

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Definitions:

Discounted Price

The reduced price of a good or service, typically offered for promotions or sales.

Retail Selling Price

The final price at which goods are sold to consumers, including all taxes, markups, and additional costs.

Mark-up

The amount added to the cost price of goods to cover overhead and profit, determining the selling price.

Regular Selling Price

The standard or usual price at which a product is sold to consumers, without any discounts or promotions.