If All Consumers Pay the Same Price for a Good

question 118

Multiple Choice

If all consumers pay the same price for a good, that price represents the

• A) average value.
• B) average surplus.
• C) value they place on the last unit purchased.
• D) average value they place on units purchased.
• E) highest price per unit they would be willing to pay.

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Definitions:

Range

The difference between the highest and lowest values in a set of data.

Magnitude

The size, extent, or importance of something, often quantitative in nature.

Perfect Positive Relationship

A correlation in which one variable increases exactly as the other one increases, represented by a correlation coefficient of +1.

Correlation Coefficient

A numerical measure that quantifies the strength and direction of a relationship between two variables.