Exhibit 11.7

-Refer to Exhibit 11.7,which shows the demand and supply curves of a resource.The total resource earnings in equilibrium equal _____

Question

Exhibit 11.7
 
-Refer to Exhibit 11.7,which shows the demand and supply curves of a resource.The total resource earnings in equilibrium equal _____

Quizplus · Accepted Answer

In equilibrium, the quantity of the resource demanded is equal to the quantity supplied, and the price is determined at the point where the demand and supply curves intersect. In Exhibit 11.7, this intersection occurs at a price of $30 per unit and a quantity of 500 units. Therefore, the total resource earnings in equilibrium is given by:
Total resource earnings = price x quantity
= $30 x 500
= $15,000
Thus, the correct choice is C, which is $15,000.

Exhibit 11.7 -Refer to Exhibit 11.7,which Shows the Demand and Supply Curves