A situation in which the price charged is less than society's opportunity cost would lead to
A) too little being produced.
B) too much being produced.
C) an efficient amount being produced.
D) marginal cost pricing.
Answer: B
Economics
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Lee, J Brand, Joe's Jeans, Paper Denim & Cloth, Levi's, Wrangler, and many others are all producers of jeans. J Brand jeans sell for about $200 a pair. What would happen if J Brand priced their jeans at $220 per pair?
A) They would sell fewer jeans because demand is elastic. B) They would not sell any jeans. C) They would sell more jeans. D) They would sell fewer jeans because demand is perfectly elastic.
Economics