The Demand Function for a Commodity Is Given By $$p = 2,000 - 0.1 x - 0.01 x ^ { 2 } .$$

question 144

Multiple Choice

The demand function for a commodity is given by
$$p = 2,000 - 0.1 x - 0.01 x ^ { 2 } .$$
Find the consumer surplus when the sales level is 100 .

• A) \(\$ 9,167\)
• B) \(\$ 7,167\)
• C) \(\$ 11,167\)
• D) \(\$ 8,167\)
• E) \(\$ 10,167\)

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Definitions:

Indicator Variable

A variable used in statistical analyses that adopts a value of 1 if a certain condition is true and 0 if false, often used to represent the presence or absence of a characteristic.

Dummy Variable

A variable used in regression analysis to represent subgroups of the sample in your study.

Nominal Independent Variable

A variable used in statistical analysis that represents categories without a natural order or ranking.

Indicator Variables

Binary variables that represent presence (1) or absence (0) of a characteristic.