Table 7-5 For Each of Three Potential Buyers of Oranges, the Table

question 95

Multiple Choice

Table 7-5
For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Allison, Bob, and Charisse are the only three buyers of oranges, and only three oranges can be supplied per day.
-Refer to Table 7-5. If the market price of an orange is $0.40, then

• A)6 oranges are demanded per day, and consumer surplus amounts to $4.95.
• B)6 oranges are demanded per day, and consumer surplus amounts to $5.10.
• C)7 oranges are demanded per day, and consumer surplus amounts to $5.30.
• D)7 oranges are demanded per day, and consumer surplus amounts to $5.15.

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Definitions:

Correlation Analysis

The statistical technique used to determine the degree to which two or more quantitative variables are related to one another.

Independent Variable

A variable that is manipulated or classified in an experiment or study to observe its effect on the dependent variable.

Dependent Variable

The variable in an experiment or model that is assumed to depend on one or more independent variables.

Coefficient of Correlation

A metric that evaluates the degree and angle of a direct correlation between two quantities.