Question

Felicia knits scarves and sells them to her friends. The first week, she knits four scarves and sells three for $50 each. The next week she buys her yarn at a discount, so she knits six scarves and is able to sell five for $40 each. Which number represents quantity demanded at $40?

A. 2
B. 3
C. 5
D. 8

You are in charge of your country's currency, which is backed by a gold standard. Unfortunately, gold production is dropping sharply and is not expected to recover. What is your best option?

A. Borrow more gold.

B. Print more currency.

C. Move to fiat currency.

D. Take no action.

Answer 1

1.

The first week, Felicia knits four scarves and sells three for $50 each.

The next week she buys her yarn at a discount, so she knits six scarves and is able to sell five for $40 each.

So,the number that represents the quantity demanded at $40 is 5.

2.

The best option is - Move to fiat currency.

Fiat money is government issued currency. This currency is not backed by gold.

Fiat money does not have use value, and has value only because a government maintains its value.

Answer 2

Base on the questions in your post, and on my further calculation according to the given in your question, I would say that the answers would be the following.
#1 The number that represents quantity demanded at $40 is C. 5
#2 The best option among the following is in letter C. Move to fiat currency.

I hope you are satisfied with my answer and feel free to ask for more if you have question and further clarification