Exhibit 3-13 -----------------------------Quantity Demanded-------------------------------------

question 14

Multiple Choice

Exhibit 3-13 -----------------------------Quantity Demanded-------------------------------------
Assume that Jose, Kaitlyn, Leah, and Maria are the only buyers in this market.
Refer to Exhibit 3-13.  Fill in blanks (C) and (D) respectively with the market quantity demanded at each given price.

• A)15.43; 10.88
• B)74; 62
• C)75; 64
• D)108; 87

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Definitions:

Competitive Market

A market structure characterized by many buyers and sellers, where no single entity can dictate prices, leading to optimal resource allocation.

Marginal Revenue

The additional income earned from selling one more unit of a product or service.

Marginal Cost

The addition to total expenses resulting from the production of one more unit of a product or service.

Price-taker Market

A market condition where individual sellers or buyers cannot influence the price of goods or services and must accept the prevailing market price.