The Sum of the Terms of the Infinite Geometric Series

question 16

Multiple Choice

The sum of the terms of the infinite geometric series 1, 0.83, 0.83², 0.83³, ...is closest to

• A)infinity.
• B)1.83.
• C)5.88.
• D)0.55.
• E)120.48.

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Definitions:

Equilibrium Price

The price at which the quantity of a good supplied equals the quantity of the good demanded.

Equilibrium Quantity

The quantity of goods supplied is equal to the quantity of goods demanded at the market price.

Demand Shifts

Changes in the demand curve due to factors other than the price of the good, such as changes in income, tastes, or prices of related goods.

Quantity Demanded

The total amount of a good that consumers are willing and able to purchase at a specific price in a given period.