P_a and P_b Represent the Prices That Citizens (A)and (B),the

question 47

Multiple Choice

P_a and P_b represent the prices that citizens (a) and (b) ,the only two people in this nation,are willing to pay for additional units of a quantity (Q_c) of the public good.Q_s represents the quantity of the public good supplied by government at each of the collective prices. Refer to the above information.The collective willingness of this nation to pay for the fourth unit of the public good is:

• A) $7.
• B) $6.
• C) $5.
• D) $3. For 4 units,Person (a)is willing to pay $2 and Person (b)is willing to pay $3,for a total of $5.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Correlation Coefficients

Statistical measures that quantify the degree to which two variables are related or move together, ranging from -1 to +1.

Correlation Coefficient

A numerical indicator that shows the degree to which two or more variables move in conjunction with each other.

Negative Correlation

A relationship between two variables where one variable increases as the other decreases, indicating an inverse relationship.