Suppose That the Price P (In Dollars) to Purchase a Used

question 115

Multiple Choice

Suppose that the price P (in dollars) to purchase a used car is a function of C, its original cost (in dollars) , and its age A (in years) . So P = f(C,A) . What is the sign of

• A)Negative
• B)Positive

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Definitions:

Equilibrium

A state in a market where supply equals demand, and there are no external forces prompting change.

Farmland

Land used for farming and agricultural production.

Economic Rent

Extra income earned by a factor of production due to its scarcity or unique qualities, above what is necessary to bring it into use.

Upward Sloping

A graphical depiction indicating that as one variable increases, another variable also increases, commonly used in supply curves.