Exhibit 3-4
Refer to Exhibit 3-4. If this is a competitive market, price and quantity will gravitate toward
A)$6 and 10 units, respectively.
B)$6 and 20 units, respectively.
C)$4 and 15 units, respectively.
D)$2 and 15 units, respectively.

Question

Exhibit 3-4 
Refer to Exhibit 3-4. If this is a competitive market, price and quantity will gravitate toward
A)$6 and 10 units, respectively. 
B)$6 and 20 units, respectively. 
C)$4 and 15 units, respectively. 
D)$2 and 15 units, respectively.

Quizplus · Accepted Answer

In a competitive market, price and quantity will gravitate toward the intersection of the supply and demand curves, which is point A in Exhibit 3-4. This corresponds to a price of $4 and a quantity of 15 units. Option C is the only choice that matches this.

Exhibit 3-4 Refer to Exhibit 3-4. If This Is a Competitive Market