The Points (2, 4) and (5, 16) Both Lie on the Same

question 2

Multiple Choice

The points (2, 4) and (5, 16) both lie on the same straight-line graph. Find the value for the gradient.

• A) 12
• B) 3
• C) 0.25
• D) 2

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Definitions:

Willingness To Pay

The maximum amount an individual is prepared to offer for a good or service, reflecting the value they place on it.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply to the market.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is distributed to meet the desires of consumers.