James Is a Prospective Car Buyer

question 153

Multiple Choice

James is a prospective car buyer. In his context, which of the following statements would reflect a determining dimension?

• A) He must have enough money, or credit, to buy a car and insure it.
• B) He needs to have a valid driver's license.
• C) He has kids who have to be carpooled.
• D) He needs a safe car.
• E) His office is 2.5 miles from home.

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Definitions:

Positively Sloped

Characterizes a line or curve on a graph that moves upward as one moves from left to right, indicating a direct relationship between two variables.

Negatively Sloped

Describes a downward trend in a graph, indicating an inverse relationship between two variables, such as price and demand.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefit to society from the production and consumption of goods or services.

Producer Surplus

The discrepancy between the price sellers are ready to accept for an item and the price they actually receive.