Consider the Following Frequency of Demand and Random Numbers Random Numbers: 0

question 91

Multiple Choice

Consider the following frequency of demand and random numbers:
$$\begin{array}{l}\begin{array} { c c } &\text { Relative }\\\text { Demand } & \text { Frequency } \\\hline 0 & 0.15 \\1 & 0.30 \\2 & 0.25 \\3 & 0.15 \\4 & 0.15\end{array}\end{array}$$ Random numbers: 0.13, 0.81, 0.53.
-If the simulation begins with the second random number, the simulated value for demand would be:

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Substitutes

Goods or services that can replace each other in use, where a rise in the price of one leads to an increase in demand for the other.

Complements

Goods or services that are often used together, where an increase in demand for one leads to an increase in demand for the other.

Substitute Good

A product or service that consumers can use in place of another product or service, influenced by changes in prices, tastes, and other factors.

Market Demand Curve

A graphical representation showing the total quantity of a good or service that consumers in a market are willing and able to purchase at various prices.