Anna's demand for a (divisible) good is linear. The demand curve intersects the price axis at 40 CHF and the quantity axis at 12. Which of the following statements is correct? Choose an answer: 1. At a quantity of 5, a marginal drop in price will decrease Anna's expenses. O 2. At a quantity of 7, a marginal drop in price increases Anna's expenses. O 3. for quantity of7amarginal inccease in price leads to a decrease in Anna's expenses. O 4. The maximum output is an amount of 6 and amounts to 240 CHF. O 5. The maximum output is an amount of 6 and is 120 CHF.
Anna's demand for a (divisible) good is linear. The demand curve intersects the price axis at 40 CHF and the quantity axis at 12. Which of the following statements is correct? Choose an answer: 1. At a quantity of 5, a marginal drop in price will decrease Anna's expenses. O 2. At a quantity of 7, a marginal drop in price increases Anna's expenses. O 3. for quantity of7amarginal inccease in price leads to a decrease in Anna's expenses. O 4. The maximum output is an amount of 6 and amounts to 240 CHF. O 5. The maximum output is an amount of 6 and is 120 CHF.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Anna's demand for a (divisible) good is linear. The demand curve intersects the price axis at 40 CHF
and the quantity axis at 12.
Which of the following statements is
correct? Choose an answer:
O 1. At a quantity of 5, a marginal drop in price will decrease Anna's expenses.
O 2. At a quantity of 7, a marginal drop in price increases Anna's expenses.
O 3. Forequantity of7,amarginrat inccease in price leads to a decrease in Anna's expenses.
O 4. The maximum output is an amount of 6 and amounts to 240 CHF.
5. The maximum output is an amount of 6 and is 120 CHF.
Expert Solution
Step 1
According to the given, it can be said that at the price of 40CHF, quantity demanded is 0, and at the quantity demanded of 12, price is 0.
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