Suppose a Downward-Sloping Demand Curve Intersects the Horizontal Axis at a Point

question 99

Multiple Choice

Suppose a downward-sloping demand curve intersects the horizontal axis at a point where quantity demanded equals 1250 units.What is the "value" that consumers place on the 1250th unit of this good?

• A)a negative value
• B)a positive value
• C)$0
• D)$1250
• E)it depends on the position of the supply curve

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Definitions:

Ames Room

An optical illusion room designed to manipulate perceived size and perspective, where objects appear larger or smaller than they really are.

Proximal Stimulus

The physical energy from an object that directly interacts with sensory receptors, leading to perception.

Distal Stimulus

An object or event in the external world that provides information to the sensory organs.

Bottom-Up Processing

A cognitive process in which perception starts with an input from the environment, leading to the integration of the features of the stimulus into a cohesive whole.