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Consider a Market Where the Demand Curve Is Downward Sloping

Question 106

Multiple Choice

Consider a market where the demand curve is downward sloping and the supply curve is upward sloping (so they are neither vertical nor horizontal) .If the consumers' willingness to pay for the hundredth unit and the seller's willingness to accept for the 175th unit are both $5.00,then ________.


A) the equilibrium price is $5.00
B) the equilibrium quantity is 100 units
C) there is an excess supply of 75 units at the price of $5.00
D) there is an excess demand of 75 units at the price of $5.00

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