please explain why for choosen answer Price Quantity DemandedPer Month$5$4$3$2$16080100120140The table above illustrates quantities supply and demanded for flashlights. Which of thefollowing statements is true?Quantity SuppliedPer Montha) The law of the demand does not hold for this marketb) The law of the supply does not hold for this market$5$4$3$2$1200150100500c) The equilibrium price is $3 and the equilibrium quantity is 100 unitsd) The equilibrium price and quantity cannot be determined with a given information.Price Quantity DemandedPer Month6080100120140Quantity SuppliedPer Month200150100500The table below illustrates quantities supply and demanded for flashlights. If the currentprice is $2, thena) The market is in equilibriumb) There is a shortage and as a result the price will increasec) There is a surplus and as a result the price will decreased) The market equilibrium quantity is 120 units

1. The correct answer is option - c) The equilibrium price is $3 and equillibrium quantity is 100…

Price Quantity Demanded Per Month $5 $4 $3 $2 $1 60 80 100 120 140 Quantity Supplied Per Month 200 150 100 50 0 The table above illustrates quantities supply and demanded for flashlights. Which of the following statements is true? a) The law of the demand does not hold for this market b) The law of the supply does not hold for this market c) The equilibrium price is $3 and the equilibrium quantity is 100 units Price Quantity Demanded Per Month d) The equilibrium price and quantity cannot be determined with a given information. Quantity Supplied

Price Quantity Demanded Per Month $5 $4 $3 $2 $1 60 80 100 120 140 Quantity Supplied Per Month 200 150 100 50 0 The table above illustrates quantities supply and demanded for flashlights. Which of the following statements is true? a) The law of the demand does not hold for this market b) The law of the supply does not hold for this market c) The equilibrium price is $3 and the equilibrium quantity is 100 units Price Quantity Demanded Per Month d) The equilibrium price and quantity cannot be determined with a given information. Quantity Supplied

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 1DQ: Define price elasticity of demand. Give an example of a product with relatively elastic demand and...

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