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When the Price of Tomatoes Is $4, Farmers Supply 100,000

Question 107

Multiple Choice

When the price of tomatoes is $4, farmers supply 100,000 bushels. When price is $6, farmers supply 100,000 bushels. From this, we conclude that the


A) equilibrium price of tomatoes is $5
B) market-day supply curve is vertical at a quantity of 100,000
C) farmers are producing too many tomatoes
D) supply curve for tomatoes is upward sloping
E) market demand for tomatoes must be 100,000

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