Use the Following Information for Questions
Observation
$\Sigma$ $\Sigma$

question 41

Multiple Choice

Use the following information for questions
Observation

The numbers in each cell represent the sales level in thousands of
dollars.
-Which of the following is/are true? 1-The sum of squares within rows will be given by 5 3 _ $\Sigma$$\Sigma$ X_ip - X_p) ² i=1 p=1 2-The sum of squares within rows will be given by 3 _ $\Sigma$ X_p - X) ² p=1 3-The sum of squares within rows will be given by 5 5 _ $\Sigma$$\Sigma$ X_ip - X) ² i=1 p=1 4- 5 3 _ 5 3 _ 3 _ _ $\Sigma$ $\Sigma$ X_ip - X) ² = $\Sigma$ $\Sigma$ X_ip - X_p) ² + $\Sigma$ X_p - X) ² i=1 p=1 i=1 p=1 p=1

• A)1
• B)2
• C)3
• D)4
• E)1 and 4

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Definitions:

Gains From Trade

Gains achieved by dividing tasks and trading; in this way people can get more of what they want through trade than they could if they tried to be self-sufficient.

Total Surplus

The sum of consumer surplus and producer surplus; a measure of the total benefit to society from a market transaction.

Consumer Surplus

The differential between consumers’ readiness to pay a certain amount for a service or good and the payment completed.

Equilibrium

The condition in a market where the quantity demanded equals the quantity supplied, leading to no inherent force for price change.