This Graph Shows One Consumer's Demand for Ice Cream at the Student

question 90

Multiple Choice

This graph shows one consumer's demand for ice cream at the student union:
When price is $2 per scoop,each student's consumer surplus is determined by

• A)the difference between maximum willingness to pay of $4.50 and $2,or $2.50.
• B)the area of the triangle of dimension ($4.50 - $2.00)high and 6 long = $7.50.
• C)the difference between each student's maximum price of $4.50 and $2 times the number of scoops,or $2.50 times 6 = $15.
• D)The area of the triangle of dimension $4.50 high and 8 long = $18.

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Definitions:

Sample Size

The number of observations or replicates included in a statistical sample.

Confidence Level

The probability that the value of a parameter falls within a specified range of values.

Population Standard Deviation

A measure of the dispersion or spread of all the data points in a population dataset.

Interval Estimate

A range of values derived from sample data that is likely to contain the value of an unknown population parameter.