Suppose the Market Demand Curve for a Good Passes Through

question 492

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

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Definitions:

Basic Needs

Fundamental requirements that serve as the foundation for survival, including physiological needs such as food, water, shelter, and safety.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Maslow

Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, which is a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Unconscious Fixations

Deeply held impulses or patterns of thought rooted in one's subconscious mind, influencing behavior or attitudes.