The Average Quantity of Sculptures That Consumers Will Demand Can

question 36

Multiple Choice

The average quantity of sculptures that consumers will demand can be modeled as and the average quantity that producers will supply can be modeled as where the market price is p hundred dollars per sculpture. How much are consumers willing and able to spend for 74 sculptures? Round your answer to the nearest dollar.

• A) $110,433
• B) $3907
• C) $772,856
• D) $114,340
• E) $658,516

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Definitions:

Decreasing-cost Industry

An industry where the cost per unit of output decreases as the scale of production increases.

Long-run Equilibrium Price

The price level at which the quantity supplied equals the quantity demanded, achieved over a period where all inputs can be varied by producers.

Increase in Demand

A situation where there is a rise in consumers' desire to purchase goods or services, leading to higher quantity demanded at every price level.

Constant Costs

Occur when the cost of producing an additional unit of a good does not change as the scale of production increases or decreases.