Suppose That Three Consumers Are in the Market for Good

question 67

Multiple Choice

Suppose that three consumers are in the market for good X. Consumer 1's (inverse) demand is P_X = 20 - Q_X; Consumer 2's (inverse) demand is P_X = 20 - 2Q_X; and Consumer 3's (inverse) demand is P_X = 20 - 4Q_X. When P_X = $10, the market will demand:

• A) 17.5 units and the inverse market demand curve is P_X = 20 - 0.5714Q_X.
• B) -30 units and the inverse market demand curve is P_X = 60 - 7Q_X.
• C) 17.5 units and the inverse market demand curve is P_X = 60 - 7Q_X.
• D) None of the statements is correct.

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Definitions:

Back Channeled

The practice of giving nonverbal or verbal cues during communication to indicate understanding, attentiveness, or agreement without interrupting the speaker.

Nonverbal Communication

The process of conveying messages or signaling information through means other than verbal words, such as body language or facial expressions.

Indirect Benefit

An advantage or positive outcome that is not the direct result of an action or policy, often realized over time or through secondary effects.

Insight

The ability to gain an accurate and deep understanding of a person, topic, or thing, often leading to a breakthrough or discovery.