At the point where the market price is $6 and the quantity demanded is 4 units f

Question

At the point where the market price is $6 and the quantity demanded is 4 units following statements is true? The maximum price that consumers are willing to pay for any of the 4 demanded is $6. The minimum price that consumers are willing to pay for any of the 4 demanded is $6. No one currently buying pizza thinks that a unit of pizza is worth If producers produced more than 4 units of pizza at the market price will be demanded. At the market price of $6, 4 units of pizza will be demanded. Which of the following statements is true? If the absolute value of the percentage change in quantity demanded is smaller than the value of the percentage change in price, demand is classified as being inelastic. perfectly inelastic. unit-elastic. perfectly elastic. elastic. to $1350. If Sam's price remains at $1 per litre after Joe cuts his price. Sam will collect $500 in If Sam cuts his price to 90 cents per litre, his total revenue would also rise to $1350 if Joe charge $1 per litre. Joe will collect $500 in revenue if he keeps his price at $1 per litre while lowers his to 90 cents per litre. Joe and Sam will receive $900 each in total revenue if they their price to 90 cents per litre. You may find it easier to answer the following questions if you payoff matrix below. Refer to the information given above. In this game, the strategies available to Joe cut price to 90 cents per litre. leave price at $1 per litre. cut price to 85 cents per litre. cut price to some extent or leave price at $1 per litre. cut price to 90 cents per litre or leave price at $1 per litre.

Explanation / Answer

1. Equilibrium is the point which represent the scenerio when market demand is equal to market supply, Now in the graph above if we see only from demand point of view then at each price the quantity of pizza demanded is different, At price $6 the quantity demanded is 4 units. So answer is E

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