Which of the Following Could Explain Why There Was a Stampede

question 2

Multiple Choice

Which of the following could explain why there was a stampede at the Richmond International Raceway where 1,000 laptops were being sold at $50 each?

• A) The demand for laptops is not very responsive to price.
• B) The price of $50 per laptop was above the equilibrium price of laptops.
• C) The quantity of laptops demanded at $50 was higher than the quantity supplied.
• D) The people who bought the laptops at that price were those who valued laptops the most.

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Definitions:

Net Increase

The overall rise in a particular number after all deductions or decreases have been considered.

Units of X

A term commonly used in economics and other disciplines to denote a quantity or amount of a particular good or service referred to as "X."

Utility Function

A mathematical representation of how a consumer ranks different bundles of goods such that the higher the function's value, the higher the level of satisfaction.

Price Increase

A situation where the cost of goods or services rises over a period.