Figure 4-3 -Refer to Figure 4-3.If These Are the Only Two Consumers

question 98

Multiple Choice

Figure 4-3

-Refer to Figure 4-3.If these are the only two consumers in the market,then the market quantity demanded at a price of $6 is

• A)12 units.
• B)14 units.
• C)19 units.
• D)21 units.

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Definitions:

CAPM

Capital Asset Pricing Model; a model that describes the relationship between risk and expected return and that is used in the pricing of risky securities.

Arbitrage Pricing Theory

A financial model that estimates the price of securities by considering the relationship between their expected returns and macroeconomic factors.

Single Market Index

An index that measures the performance of a specific market segment or region.

Nonsystematic Risk

This type of risk is unique to a specific company or industry and can be reduced through diversification.