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Allison's Auto Art Is a Company That Applies Pinstripes to Vehicles.Allison's

question 97

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Allison's Auto Art is a company that applies pinstripes to vehicles.Allison's cost for a basic one-colour pinstriping job is $35,and she charges $95 for this service.For a total price of $175,Allison will apply a fancier three-colour pinstripe application to an automobile,a service that adds an additional $40 to the total cost of the package.What is Allison's marginal benefit if she sells a basic one-colour job?


Definitions:

Quantity Supplied

The quantity of a product or service that suppliers are ready and capable of offering for sale at a specific price point.

Quantity Demanded

The total number of units of a good or service that consumers are willing and able to purchase at a given price in a given time period.

Increase in Demand

A situation in which more of a product or service is desired, leading to a shift of the demand curve to the right.

Ceteris Paribus

A phrase in Latin that translates to "with all other conditions remaining the same," employed to examine the impact of a single variable while holding others constant in economic studies.

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