The Equilibrium Point in the Market Is Where S and D

question 116

Multiple Choice

The equilibrium point in the market is where S and D curve intersect. Refer to the graph above. At equilibrium, the total maximum amount that consumers would have been willing to pay for the product is represented by the area:

• A) a + b
• B) a + b + c
• C) a
• D) b + c

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Definitions:

Independent Variable

A variable thought to be the cause or predictor of changes in a dependent variable.

Regression Function

An equation in mathematics that illustrates how one or more variables that can vary independently affect a variable that depends on them.

Estimated Regression Line

A line calculated from regression analysis that represents the relationship between independent and dependent variables.

Sales

The exchange of a commodity for money; the action of selling something.