Suppose the Market Demand Curve for a Good Passes Through

question 64

Multiple Choice

Suppose the market demand curve for a good passes through the point (quantity demanded = 100, price = $25) . If there are five buyers in the market, then

• A)the marginal buyer's willingness to pay for the 100^th unit of the good is $25.
• B)the sum of the five buyers' willingness to pay for the 100^th unit of the good is $25.
• C)the average of the five buyers' willingness to pay for the 100^th unit of the good is $25.
• D)all of the five buyers are willing to pay at least $25 for the 100^th unit of the good.

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Definitions:

Randomly Selected

A method of selection where each member of a population has an equal chance of being included in the sample, ensuring the sample's representativeness.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, which can provide insight into the properties of the population from which the sample was drawn.

Freshman Class

The group of students who are in their first year of secondary or higher education at a particular institution.

Usable Lifetime

The period during which a product or component is expected to perform its intended function satisfactorily under normal usage conditions.