Suppose That Three Consumers Are in the Market for Good

question 122

Multiple Choice

Suppose that three consumers are in the market for good X.Consumer 1's (inverse) demand is P_X = 40 − Q_X; Consumer 2's (inverse) demand is P_X = 50 − 2Q_X; and Consumer 3's (inverse) demand is P_X = 70 − 4Q_X.When P_X = $20,the market will demand:

• A) 41 units.
• B) 47.5 units.
• C) 19.5 units.
• D) None of the preceding statements is correct.

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Definitions:

Operating Income

Earnings before interest and taxes (EBIT), representing the profits from a company's regular business operations excluding deductions of interest and taxes.

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The total amount of money received by a company for goods sold or services provided during a certain period.

Unearned Revenue

Income received by a company for services or products yet to be delivered or provided, often considered a liability until the service or product is delivered.

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