The logical foundation of ________________, which show a connection between prices and quantity wanted, is that people seek utility.

Your grandfather tells you that he earned $7,000/year in his first job in 1961. You earn $35,000/year in your first job in 2016. You know that average prices have risen steadily since 1961. You earn

A) less than 5 times as much as your grandfather in terms of nominal income. B) 5 times as much as your grandfather in terms of real income. C) less than 5 times as much as your grandfather in terms of real income. D) more than 5 times as much as your grandfather in terms of real income.

Using the above table, the market clearing price is ________ and equilibrium quantity is ________

A) $55; 80 B) $60; 150 C) $70; 150 D) $150; 150