Which of the Following Statements Is True of Using Models

question 26

Multiple Choice

Which of the following statements is true of using models in problem solving and decision analysis?

• A) It is a fairly new idea.
• B) It is required in order to find good solutions.
• C) It is something everyone has done before.
• D) It is tied to the use of computers.

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Definitions:

Decrease in Income

A reduction in the amount of money received by an individual or entity, which can affect consumption and saving behaviors.

Downward-sloping Demand Curve

A graph showing that the quantity demanded of a good or service varies inversely with its price, other things being equal.

Equilibrium Price

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers.

Consumer Surplus

The divergence between the total payment consumers are willing to make for a product or service and what they really pay.