Suppose There Are Only Three Consumers in the Market for a Good

question 66

Multiple Choice

Suppose there are only three consumers in the market for a good and each consumer will buy only one unit of the good.Their individual economic values for the good are $6,$8,and $12,respectively.If the market price for the good is $10,what is the total consumer surplus for the three buyers?

• A)$2
• B)$4
• C)$6
• D)$8
• E)$12

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Definitions:

ANOVA

A statistical method (Analysis of Variance) used to compare the means of three or more samples to see if they come from the same population.

Regression

A statistical method used to examine the relationship between one dependent variable and one or more independent variables.

Intercept Term

In statistics, the intercept term is a constant value that represents where the estimated regression line crosses the y-axis.

Stepwise Regression

An approach to constructing regression models where the selection of predictor variables is performed through an automated process.