Assume a Person Reveals the Following Demand Conditions

question 26

Multiple Choice

Assume a person reveals the following demand conditions.At a price of $10,quantity demanded is zero; and at a price of $1,quantity demanded is 10 units.

• A)The consumer surplus will be zero at a price of $10.
• B)The consumer surplus will be the area under the entire demand curve.
• C)The consumer surplus is zero at a price of $1.
• D)Demand decreases as the price decreases.
• E)The lower the price the smaller the consumer surplus.

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Definitions:

Single-Member Districts

Electoral districts that elect only one representative to a legislative body, typically by a simple majority vote.

Proportional Representation

An electoral system where parties gain seats in proportion to the number of votes cast for them, as opposed to a winner-take-all system.

Andrew Jackson

The seventh President of the United States (1829–1837) known for his populist approach, founding the Democratic Party, and policies leading to the Trail of Tears.

Democratic Party

One of the two major contemporary political parties in the United States, characteristically supporting liberal, progressive policies.