Use the Following General Linear Demand Relation: Where M

question 1

Multiple Choice

Use the following general linear demand relation: where M is income and is the price of a related good,R.If M = $15,000 and = $20 and the supply function is ,then,when the price of the good is $40,

• A)there is equilibrium in the market.
• B)there is a shortage of 180 units of the good.
• C)there is a surplus of 180 units of the good.
• D)there is a shortage of 80 units of the good.

---

Definitions:

Pay-per-view

A service provided by television companies allowing customers to purchase events to view on their TVs, often used for exclusive broadcasts like sports events or movies.

Saints Logo Hats

A specific type of merchandise often categorized under sports gear, featuring the logo of the Saints, presumably a sports team.

Monopoly

A market structure where a single firm controls the entire supply of a good or service, leading to significant market power over price and quantity.

Profit Maximization

The process or strategy aimed at achieving the highest possible profit, where total revenue exceeds total costs.