Assume an Individual with a Downward- Sloping Demand Curve Is

question 14

Multiple Choice

Assume an individual with a downward- sloping demand curve is paying a single price for each unit of some commodity. He will get consumer surplus on

• A) none of the units.
• B) the first unit only.
• C) all units bought with the possible exception of the last unit.
• D) all of the units bought.
• E) all units that were not bought at that particular price.

---

Definitions:

Free-Market System

An economic system where prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.

Wage

The amount of money paid to an employee by an employer in exchange for work performed, usually expressed on a per-hour, per-day, or per-project basis.

Interest Income

Earnings received from deposit accounts like savings or money market accounts, certificates of deposit, or income from bonds and loans made to others, calculated as a percentage of the principal amount.

Laissez-Faire

An economic philosophy of free-market capitalism that opposes government intervention.