ECO 202 Test 2 Study Guide
(Last Word) Microsoft charges a substantially lower price for a software upgrade than for the initial purchase of the software. This implies that Microsoft views the demand curve for the software upgrade to be A. more elastic than the demand for the original software. B. upsloping rather than downsloping. C. less elastic than the demand for the original software. D. of less value than the original software.
A
A purely competitive firm should produce in the short run if its total revenue is sufficient to cover its A. total variable costs. B. total costs. C. total fixed costs. D. marginal costs.
A
Answer the question on the basis of the following cost data. Output Total Cost 0.................. $24 1..................... 33 2.................... 41 3................... 48 4................... 54 5.................... 61 6.....................69 The average fixed cost of producing 3 units of output is A. $8. B. $7.40. C. $5.50. D. $6.
A
At P4 in the accompanying diagram, this firm will A. shut down in the short run. B. produce 30 units and incur a loss. C. produce 30 units and earn only a normal profit. D. produce 10 units and earn only a normal profit.
A
Cross elasticity of demand measures how sensitive purchases of a specific product are to changes in A. the price of some other product. B. the price of that same product. C. income. D. the general price level.
A
If a purely competitive constant-cost industry is realizing economic profits, we can expect industry supply to A. increase, output to increase, price to decrease, and profits to decrease. B. increase, output to increase, price to increase, and profits to decrease. C. decrease, output to decrease, price to increase, and profits to increase. D. increase, output to decrease, price to decrease, and profits to decrease.
A
If the price of hand calculators falls from $10 to $9 and, as a result, the quantity demanded increases from 100 to 125, then A. demand is price elastic. B. demand is price inelastic. C. demand is unit elastic with respect to price. D. not enough information is given to make a statement about elasticity.
A
In the provided diagram, at the profit-maximizing output, total profit is A. efbc. B. fgab. C. egac. D. 0fbn.
A
Output................... Total Cost 0...................................$2,500 1.......................................2,700 2.......................................3,100 3......................................3,700 4......................................4,500 5......................................6,000 The table shows the total costs for a purely competitive firm. If the firm shuts down in the short run, the total cost will be A. $ 0. B. $2,500. C. $2,700. D. $3,100.
B
Refer to the accompanying graphs for a competitive market in the short run. Which of the following statements is true? A. The representative firm will increase production. B. The representative firm is experiencing economic losses. C. The representative firm is breaking even. D. The representative firm is making economic profits.
B
Refer to the diagram. By producing at output level Q, A. neither productive nor allocative efficiency is achieved. B. both productive and allocative efficiency are achieved. C. allocative efficiency is achieved, but productive efficiency is not. D. productive efficiency is achieved, but allocative efficiency is not.
B
Refer to the diagram. Constant returns to scale A. occur over the 0Q1 range of output. B. occur over the Q1Q3 range of output. C. begin at output Q3. D. are in evidence at all output levels.
B
Refer to the diagrams. In which case would the coefficient of income elasticity be negative? A B C D
B
Refer to the graph. Which one of the following would cause a move from point b on short-run average total cost curve ATC1 to point e on short-run average cost curve ATC2? A. diminishing marginal returns B. an increase in the wage rate C. a decrease in the wage rate D. increasing marginal returns
B
Refer to the provided graphs. They show the long-run average total cost (LRATC) for cars. For which graph are there economies of scale throughout the entire range of output of cars? A. graph A B. graph B C. graph C D. graph D
B
Supply curves tend to be A. perfectly elastic in the long run because consumer demand will have sufficient time to adjust fully to changes in supply. B. more elastic in the long run because there is time for firms to enter or leave the industry. C. perfectly inelastic in the long run because the law of scarcity imposes absolute limits on production. D. less elastic in the long run because there is time for firms to enter or leave an industry.
B
The accompanying graph represents the purely competitive market for a product. When the market is at equilibrium, the producer surplus would be represented by the area b + c. b. c. b + c + d.
B
The accompanying graph shows the cost curves for a competitive firm. If the market price of the product is $1.05 per unit, then the firm will produce how many units in the short run? A. between 0 and 15 B. between 15 and 20 C. between 20 and 35 D. above 35
B
The diagram portrays A. a competitive firm that should shut down in the short run. B. the equilibrium position of a competitive firm in the long run. C. a competitive firm that is realizing an economic profit. D. the loss-minimizing position of a competitive firm in the short run.
B
The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000 Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 If, other things equal, Creamy Crisp's revenue fell to $286,000, A. its implicit costs, including a normal profit, would exceed its explicit costs. B. it would earn a normal profit but not an economic profit. C. it would suffer an economic loss. D. its accounting profit would fall to $0.
B
The table shows the relationship between total cost and output for a firm. Output Total Cost 0..........................$ 400 1...............................600 2..............................760 3..............................900 4...........................1,040 5...........................1,220 The firm has a U-shaped A. total cost curve. B. marginal cost curve. C. average fixed cost curve. D. total variable cost curve.
B
The table shows the total costs for a purely competitive firm. Output Total Cost 0................ $2500 1................. 2700 2................ 3100 3................ 3700 4.................4500 5.................6000 Refer to the above table. If the firm shuts down in the short run, the total cost will be: A. $ 0. B. $2,500. C. $2,700. D. $3,100.
B
The vertical distance between the total cost and the total variable cost curves differs by an amount that A. initially increases, but then decreases, as output increases. B. is constant as output changes. C. decreases as output increases. D. increases as output increases.
B
When a purely competitive industry is in long-run equilibrium, which statement is true? A. Average total cost is less than marginal cost. B. Price and average total cost are equal. C. Marginal cost is at its maximum level. D. Marginal revenue is greater than price.
B
When the price of a product is increases by 15 percent, the quantity demanded decreases by 10 percent. We can therefore conclude that the demand for this product is A. elastic. B. inelastic. C. cross-elastic. D. unitary elastic.
B
Which of the following generalizations is not correct? A. The larger an item is in one's budget, the greater the price elasticity of demand. B. The price elasticity of demand is greater for necessities than it is for luxuries. C. The larger the number of close substitutes available, the greater will be the price elasticity of demand for a particular product. D. The price elasticity of demand is greater the longer the time period under consideration.
B
Output ..........Total Revenue.......... Total Cost 0....................................$0..............................$50 1.....................................40.................................74 2....................................80.................................94 3..................................120.................................117 4.................................160................................142 5................................200................................172 The table gives data for a purely competitive firm. When the firm produces 3 units of output, it makes an economic A. profit of $3. B. loss of $3. C. profit of $ 40. D. loss of $39.
A
Refer to the accompanying diagram. At the profit-maximizing output, total revenue will be A. 0AHE. B. 0BGE. C. 0CFE. D. ABGE.
A
Refer to the accompanying diagram. The firm will shut down at any price less than A. P1. B. P2. C. P3. D. P4.
A
Refer to the diagrams. In which case would the coefficient of income elasticity be positive? A B C D
A
Refer to the provided graph. There are economies of scale A. from Q1 to Q2. B. from Q2 to Q3. C. from Q3 to Q4. D. beyond Q4.
A
Suppose the price elasticity coefficients of demand are 1.43, 0.67, 1.11, and 0.29 for products W, X, Y, and Z, respectively. A 1 percent decrease in price will increase total revenue in the cases of A. W and Y. B. Y and Z. C. X and Z. D. Z and W.
A
The first, second, and third workers employed by a firm add 24, 18, and 9 units to total product, respectively. Therefore, we can conclude that A. marginal product of the third worker is 9. B. the third worker has to work with poorer-quality tools and raw materials. C. the firm will not want to hire more than three workers. D. the first worker puts forth more effort than the second and third workers.
A
The following table shows the short-run total cost data for a firm. Output Total Cost 0.............................$ 80 1.................................160 2...............................240 3...............................320 4...............................400 5...............................480 6...............................560 All of the following are correct, except that the firm has A. economies of scale. B. fixed costs of $80. C. constant marginal cost. D. an average fixed cost of $20 at 4 units of output.
A
The question is based on the following table, which provides information on the production of a product that requires one variable input. Input Total Product 0.......................0 1........................5 2.....................20 3.....................32 4.....................42 5.....................50 6.....................55 7.....................58 8.....................58 9.....................56 Marginal product is largest for the A. second unit of variable input. B. third unit of variable input. C. seventh unit of variable input. D. ninth unit of variable input.
A
Total Output......Total Fixed Cost...,Total Variable Cost..... Total Cost 0..........................................$50...................................$0.............................$50 1..............................................50...................................70...............................120 2.............................................50..................................120..............................170 3.............................................50.................................150..............................200 4.............................................50................................220..............................270 5.............................................50................................300.............................350 6.............................................50................................390..............................440 The accompanying table gives cost data for a firm that is selling in a purely competitive market. The marginal cost of the fifth unit of output is A. $80. B. $90. C. $50. D. $20.
A
When a firm doubles its inputs and finds that its output has more than doubled, this is known as A. economies of scale. B. constant returns to scale. C. diseconomies of scale. D. a violation of the law of diminishing returns.
A
Which of the following distinguishes the short run from the long run in pure competition? A. Firms can enter and exit the market in the long run but not in the short run. B. Firms attempt to maximize profits in the long run but not in the short run. C. Firms use the MR = MC rule to maximize profits in the short run but not in the long run. D. The quantity of labor hired can vary in the long run but not in the short run.
A
Which of the following is a short-run adjustment? A. A local bakery hires two additional bakers. B. Six new firms enter the plastics industry. C. The number of farms in the United States declines by 5 percent. D. BMW constructs a new assembly plant in South Carolina.
A
Which of the following statements is false? A. The short run refers to a period of less than one year. B. In the long run, all inputs can vary in quantity. C. Firms may continue operating at a loss in the short run. D. In the long run, firms would not continue operating at a loss.
A
Which of the following statements is true for a long-run supply curve that slopes upward? A. If total market output is increased, unit costs of production increase. B. If total market output is unchanged, unit costs of production increase. C. The total cost of producing 15 units is no larger than the cost of producing 10 units. D. If total market output is decreased, total costs of production will remain unchanged.
A
A firm can sell as much as it wants at a constant price. Demand is thus A. perfectly inelastic. B. perfectly elastic. C. relatively inelastic. D. relatively elastic.
B
A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 500 units is $1.50. The average variable cost is $1.00. The market price of the product is $1.25. To maximize profits or minimize losses, the firm should A. continue producing 500 units. B. continue production, but produce less than 500 units. C. increase production to more than 500 units. D. shut down.
B
A perfectly inelastic demand schedule A. rises upward and to the right but has a constant slope. B. can be represented by a line parallel to the vertical axis. C. cannot be shown on a two-dimensional graph. D. can be represented by a line parallel to the horizontal axis.
B
Assume a purely competitive increasing-cost industry is initially in long-run equilibrium and that an increase in consumer demand occurs. After all economic adjustments have been completed, product price will be A. lower, but total output will be larger than originally. B. higher, and total output will be larger than originally. C. lower, and total output will be smaller than originally. D. higher, but total output will be smaller than originally.
B
Assume that society places a higher value on the last unit of X produced than the value of the resources used to produce that unit. With no spillovers, this information means that A. total cost is greater than total revenue. B. price is greater than marginal cost. C. marginal cost is greater than price. D. resources are being overallocated to X.
B
Creative destruction is illustrated by which of the following pairs of products? A. bicycles and helmets B. digital cameras and film C. DVD players and DVDs D. Netflix and iPads
B
If a firm's revenues just cover all its implicit costs, then A. normal profit is zero. B. economic profit is zero. C. total revenues equal its explicit costs. D. total revenues equal its implicit costs.
B
If a purely competitive firm is producing at the MR = MC output level and earning an economic profit, then A. the selling price for this firm is above the market equilibrium price. B. new firms will enter this market. C. some existing firms in this market will leave. D. there must be price fixing by the industry's firms.
B
If the demand curve faced by an individual firm is downward-sloping, the firm cannot be A. a monopoly firm. B. a purely competitive firm. C. an oligopolistic firm. D. a monopolistically competitive firm.
B
Output........... AVC........... Average Total Cost.....Marginal Cost 10......................$5.00......................$15.00.........................$3 12........................4.00..........................13.00...........................4 14........................4.75...........................11.50...........................6 16........................5.75............................9.00...........................9 20........................9.00..........................12.00...........................14 The accompanying table shows cost data for a firm that is selling in a purely competitive market. The firm will produce its output only if the price is at least equal to what minimum level? A. $3 B. $4 C. $5 D. $9
B
Which of the following statements is not correct? A. If the relative change in price is greater than the relative change in the quantity demanded associated with it, demand is inelastic. B. In the range of prices in which demand is elastic, total revenue will diminish as price decreases. C. Total revenue will not change if price varies within a range where the elasticity coefficient is unity. D. Demand tends to be elastic at high prices and inelastic at low prices.
B
With the creation and growth of the Internet, vacationers can now book their own flights, hotels, rental cars, and other travel logistics online. If this capability resulted in creative destruction, which of the following industries would we have expected to decline the most as a result? A. airlines B. travel agencies C. tourist information D. hotels
B
Allocative efficiency occurs when the A. minimum of average total cost equals average revenue. B. minimum of average total cost equals marginal revenue. C. marginal cost equals the marginal benefit to society. D. marginal revenue equals marginal benefit to society.
C
As output increases, total variable cost A. increases more rapidly than does total cost. B. increases continuously at a decreasing rate. C. increases at a decreasing rate and then at an increasing rate. D. increases at a constant rate.
C
At the Amarillo Piano Company, the average product of labor stays constant at 5, regardless of how much labor is employed. This implies that A. there are no fixed costs. B. this firm can never maximize its profits. C. the marginal product of labor is constant. D. labor exhibits diminishing marginal returns.
C
Eliminating patents would tend to A. stimulate innovation in all industries. B. discourage innovation in all industries. C. encourage innovation in products made up of many different technologies but discourage innovation of easy-to-copy products requiring large R&D costs to create. D. discourage innovation in products made up of many different technologies but encourage innovation of easy-to-copy products requiring large R&D costs to create.
C
If a competitive firm successfully adopts a better production technology ahead of the others, then A. its product price will become lower than the others'. B. its average cost will become higher than the others'. C. its profits will become higher than the others'. D. its marginal revenue will become higher than the others'.
C
If a firm can sell 3,000 units of product A at $10 per unit and 5,000 at $8, then A. the price elasticity of demand is 0.44. B. A is a complementary good. C. the price elasticity of demand is 2.25. D. A is an inferior good.
C
If a purely competitive firm is facing a situation where the price of its product is lower than the average cost, then all of the following apply, except A. the firm is suffering losses, and if things are not expected to improve, the firm will leave the industry. B. the firm may be earning some accounting profits, but less than what it could earn elsewhere. C. other firms will want to enter the industry because of the positive economic profits. D. the firm may earn economic profits in the long run if it expands its plant in order to exploit economies of scale.
C
If a variable input is added to some fixed input, beyond some point the resulting extra output will decline. This statement describes A. economies and diseconomies of scale. B. X-inefficiency. C. the law of diminishing returns. D. the law of diminishing marginal utility.
C
If demand for farm crops is inelastic, a good harvest will cause farm revenues to A. increase because of the increase in the quantity that farmers can sell. B. increase because of a downward movement along the supply curve, encouraging an increase in demand. C. decrease because of a percentage fall in price that is greater than the percentage increase in quantity sold. D. remain unchanged, because the increase in quantity that can be sold will be matched by an equal decrease in price.
C
If the University Chamber Music Society decides to raise ticket prices to provide more funds to finance concerts, the Society is assuming that the demand for tickets is A. parallel to the horizontal axis. B. shifting to the left. C. inelastic. D. elastic.
C
Implicit costs are A. the same as economic costs. B. comprised entirely of actual expenses paid by the firm for its inputs. C. opportunity costs of self-employed resources. D. always greater than accounting costs.
C
Innovations that lower production costs or create new products A. are rare in competitive industries. B. discourage new firms from entering the industry. C. often generate short-run economic profits that do not last into the long run. D. usually generate long-run economic profits for the innovator.
C
Line (1) in the diagram (upward sloping straight line) reflects the long-run supply curve for A. a constant-cost industry. B. a decreasing-cost industry. C. an increasing-cost industry. D. a technologically progressive industry.
C
Output Marginal Revenue Marginal Cost 0 -- -- 1..............................$16..........................................$10 2................................16.............................................9 3...............................16.............................................13 4...............................16.............................................17 5...............................16.............................................21 The data in the accompanying table indicates that this firm is selling its output in a(n) A. monopolistically competitive market. B. monopolistic market. C. purely competitive market. D. oligopolistic market.
C
Price is taken to be a "given" by an individual firm selling in a purely competitive market because A. the firm's demand curve is downward-sloping. B. there are no good substitutes for the firm's product. C. each seller supplies a negligible fraction of the total market. D. product differentiation is reinforced by extensive advertising.
C
Price per Ticket Quantity Demanded $13.................................. 1,000 11..................................... 2,000 9...................................... 3,000 7...................................... 4,000 5...................................... 5,000 3...................................... 6,000 Refer to the information and assume the stadium capacity is 5,000. If the Mudhens' management wanted a full house for the game, it would A. set price so as to maximize its total revenue. B. encourage scalpers to sell their tickets for more than $7. C. set ticket prices at $5. D. set ticket prices at $9.
C
Refer to the diagram. This firm's average fixed costs A. cannot be determined with the information in the diagram. B. are the vertical distance between AVC and MC. C. are the vertical distance between AVC and ATC. D. equal the per-unit change in MC.
C
Refer to the diagrams. In which case would the coefficient of cross elasticity of demand be negative? A B C D
C
Refer to the short-run production and cost data. In Figure A curve (1) is A. total product and curve (2) is average product. B. total product and curve (2) is marginal product. C. average product and curve (2) is marginal product. D. marginal product and curve (2) is average product.
C
Suppose you find that the price of your product is less than minimum AVC. You should A. minimize your losses by producing where P = MC. B. maximize your profits by producing where P = MC. C. close down because, by producing, your losses will exceed your total fixed costs. D. close down because total revenue exceeds total variable cost.
C
The accompanying graph represents the purely competitive market for a product. When the market is at equilibrium, the total revenues from selling the equilibrium output level would be represented by the area A. a + b + c. B. b. C. b + c. D. b + c + d.
C
The formula for cross elasticity of demand is percentage change in A. quantity demanded of X/percentage change in price of X. B. quantity demanded of X/percentage change in income. C. quantity demanded of X/percentage change in price of Y. D. price of X/percentage change in quantity demanded of Y.
C
The short-run supply curve for a competitive firm is the A. entire MC curve. B. segment of the MC curve lying below the AVC curve. C. segment of the MC curve lying above the AVC curve. D. segment of the AVC curve lying to the right of the MC curve.
C
The supply of product X is perfectly inelastic if the price of X rises by A. 5 percent and quantity supplied rises by 7 percent. B. 8 percent and quantity supplied rises by 8 percent. C. 10 percent and quantity supplied stays the same. D. 7 percent and quantity supplied rises by 5 percent.
C
The vertical distance between the TC curve and TVC curve is equal to A. ATC. B. AVC. C. TFC. D. MC.
C
When producing 8 units of output, average fixed cost is $12.50 and average variable cost is $81.25. Total cost at this output level is A. $93.75. B. $97.78. C. $750. D. $880.
C
Which of the output levels in the accompanying graph is the profit-maximizing output level for this firm? A. Q1 B. Q2 C. Q3 D. Q4
C
Which would indicate that a firm is operating under conditions of pure competition and is being productively efficient? A. It is making economic profits in the long run. B. Marginal cost equals average variable cost. C. It produces at the minimum average total cost. D. Its marginal revenue is less than average revenue.
C
For a purely competitive seller, price equals A. average revenue. B. marginal revenue. C. total revenue divided by output. D. all of these.
D
Gigantic State University raises tuition for the purpose of increasing its revenue so that more faculty can be hired. GSU is assuming that the demand for education at GSU is A. decreasing. B. relatively elastic. C. perfectly elastic. D. relatively inelastic.
D
If a purely competitive firm is producing at some output level less than the profit-maximizing output, then A. price is necessarily greater than average total cost. B. fixed costs are large relative to variable costs. C. price exceeds marginal revenue. D. marginal revenue exceeds marginal cost.
D
If the long-run supply curve of a purely competitive industry slopes upward, this implies that the prices of relevant resources A. will fall as the industry expands. B. are constant as the industry expands. C. rise as the industry contracts. D. rise as the industry expands.
D
If the price elasticity of demand for a product is unity, a decrease in price will A. have no effect upon the amount purchased. B. Increase the quantity demanded and increase total revenue. C. increase the quantity demanded but decrease total revenue. D. increase the quantity demanded, but total revenue will be unchanged.
D
In the short run, a purely competitive firm will earn a normal profit when A. P = AVC. B. P > MC. C. that firm's MR = market equilibrium price. D. P = ATC.
D
In which of the following instances will total revenues decline? A. price rises and Ed equals .41 B. price rises and demand is of unit elasticity C. price falls and demand is elastic D. price rises and Ed equals 2.47
D
Refer to the diagram, which pertains to a purely competitive firm. Curve C represents A. total revenue and marginal revenue. B. marginal revenue only. C. total revenue and average revenue. D. average revenue and marginal revenue.
D
Refer to the diagram. If price falls from $10 to $2, total revenue A. rises from A + B to A + B + D + C, and demand is elastic. B. falls from A + D to B + C, and demand is inelastic. C. rises from C + D to B + A, and demand is elastic. D. falls from A + B to B + C, and demand is inelastic.
D
Refer to the diagrams. The case of substitute goods is represented by figure A. B. C. D.
D
Resources are efficiently allocated when production occurs at that output at which A. P equals MR. B. P equals AVC. C. P exceeds MR. D. P equals MC.
D
Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. If the firm sold 100,000 units of its output at $50 per unit, its accounting A. profits were $100,000 and its economic profits were $0. B. losses were $500,000 and its economic losses were $0. C. profits were $500,000 and its economic profits were $1 million. D. profits were $0 and its economic losses were $500,000.
D
The accompanying graph shows short-run cost curves for a competitive firm. At what price would the firm break even? A. P1 B. P2 C. P3 D. P4
D
The concept of price elasticity of demand measures A. the slope of the demand curve. B. the number of buyers in a market. C. the extent to which the demand curve shifts as the result of a price decline. D. the sensitivity of consumer purchases to price changes.
D
The fixed cost of the firm is $500. The firm's total variable cost is indicated in the table. Output Total Variable Cost 1...............................$ 400 2...................................720 3................................1,000 4................................1,400 5...............................2,000 6...............................3,600 The average variable cost of the firm when 5 units of output are produced is A. $100. B. $200. C. $300. D. $400.
D
The provided graph gives short-run data for a firm. If the product price is P2, the firm will A. close down to avoid a loss. B. produce Q2 units and make an economic profit. C. produce Q5 units and break even. D. produce Q2 units and suffer a loss.
D
Which of the following is not an assumption that we make in analyzing pure competition in the long run? A. Firms are free to enter into or exit from a purely competitive market. B. We may talk about a "representative" firm by assuming that competitive firms all have identical cost curves. C. Firms may increase output by expanding their plant sizes. D. Profits are not relevant to firm behavior anymore, because competitive firms earn zero profits in the long run.
D
Which of the following statements about pure competition in the long run is not true? A. Entry and exit of firms will push economic profits of firms in the industry toward zero. B. Entry and exit of firms will shift the demand curve facing the representative firm in the industry. C. The long-run adjustment in pure competition happens through shifts in the industry supply curve. D. The long-run adjustment in pure competition happens through shifts in the industry demand curve.
D
TP............ AFC.............. AVC ...............ATC.......... Marginal Cost 1.............$100.00..........$17.00............$117.00................$17 2................50.00.............16.00...............66.00...................15 3................33.33.............15.00..............48.33...................13 4................25.00.............14.25...............39.25...................12 5................20.00.............14.00...............34.00..................13 6..................16.67.............14.00...............30.67...................14 7..................14.29..............15.71...............30.00..................26 8..................12.50..............17.50..............30.00..................30 9...................11.11.................19.44..............30.55.................35 10................10.00...............21.60...............31.60.................41 11.................9.09................24.00..............33.09.................48 12................8.33................26.67..............35.00.................56 The accompanying table gives cost data for a firm that is selling in a purely competitive market. If there were 1,000 identical firms in this industry and total, or market, demand is as shown in the second table, equilibrium price will be Price Quantity Demanded $50......................3,000 42.........................6,000 36.........................9,000 32.........................11,000 20........................14,000 13.........................19,500 A. $32. B. $42. C. $36. D. $20..
c
