If the Number of Persons Who Attend the Club Meeting

question 26

Multiple Choice

If the number of persons who attend the club meeting this week is X, then the number of people who will attend next week is 80 + 0.20X.What is a long-run equilibrium attendance for this club?

• A)80
• B)400
• C)160
• D)100
• E)20

---

Definitions:

Same Industry

Pertains to businesses or entities that operate within the same sector or category of the economy, producing similar goods or services.

Risky

Involving or exposing someone to a possibility of loss or injury.

Random Walk Theory

The hypothesis that stock market prices evolve according to a random walk and thus cannot be predicted.

Stock Prices

The market price of a share of a company's stock, reflecting investor sentiment and company valuation at a given time.