Tickets for a Drawing Are Sold for $20 Each

question 35

Short Answer

Tickets for a drawing are sold for $20 each. The holder of the winning ticket wins a cash prize of $3000. If 2000 tickets are sold, find the expected value of the gain.

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Definitions:

Law Of Supply

The principle that, other things equal, an increase in the price of a product will increase the quantity of it supplied, and conversely for a price decrease.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell.

High Prices

A situation where the cost of goods or services is significantly above average or expected levels.

Low Prices

Low prices refer to the situation where goods or services are offered on the market at particularly reduced costs, often reflecting supply and demand dynamics or promotional strategies.