Questions
Princip of Econ-Microeconomics Quiz 12
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Quantity Person A: WTP Person B: WTP Person C: WTP 1 $30 $25 $50 2 $20 $10 $35 3 $10 $0 $20 4 $0 $0 $5 The table above represents the individual demand curves for three different people for a good. Assume also that the market as as whole is made up of the three consumers in total. Assume the good is a private good (e.g. a ticket to a Broadway-type musical). If the price is set to $15 per ticket, how many tickets would "Person A" purchase? [ Select ] 2 0 3 4 1 If the price is set to $15 per ticket, how many tickets would be purchased in the market as a whole? [ Select ] Between 4 and 6, inclusive 0 Between 7 and 9, inclusive Between 1 and 3, inclusive more than 9 If the price rises to $45 per ticket, how many tickets would be purchased in the market as a whole? Between 1 and 3, inclusive
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Step-by-Step Analysis
First, we restate the scenario and each sub-question to orient the analysis.
Question 1 asks: If the price is set to $15 per ticket, how many tickets would 'Person A' purchase? The options are: 2, 0, 3, 4, 1.
Question 2 asks: If the price is set to $15 per ticket, how many tickets would be purchased in the market as a whole? The options are: Between 4 and 6, inclusive; 0; Between 7 and 9, inclusive; Between 1 and 3, inclusive; more than 9.
Question 3 asks: If the price rises to $45 per ticket, how many tickets would be purchased in the market as a whole? The options are: Between 1 and 3, inclusive.
Now, evaluate each option for each sub-question with careful reference to the individual demand data provided.
Analysis for Question 1 options
- Option: 2
Think about Person A’s willingness to pay (WTP) by quantity. At price 15, A has WTPs of 30, 20, 10, 0 for tickets 1 through 4 respectively. Since 15 is less ......Login to view full explanationLog in for full answers
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