Joss Is a Marketing Consultant

question 61

Multiple Choice

Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report. Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose that the opportunity cost of Joss's time is $1,200. Assume that Iris and Daphne do not know each other. If the price is $500 per copy,

• A) only Iris will purchase Joss's services and Joss will undertake the job for her.
• B) only Daphne will purchase Joss's services and Joss will undertake the job for her.
• C) both Iris and Daphne will purchase Joss's services and Joss will undertake the job.
• D) both Iris and Daphne will want to purchase Joss's services but Joss will not be willing to undertake the job.

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Definitions:

Quantity Demanded

The amount of a product or service consumers are willing to buy at a given price.

Demand Curve

A graphical representation showing how the quantity of a good or service demanded by consumers changes at different price levels.

Supply Curve

A graphical representation used in economics to show the relationship between the price of a good and the quantity of the good that suppliers are willing and able to supply at various prices.

Movement

A change or shift in position, location, or state, either physically, socially, economically, or politically.