Reference: Ref 8-10 (Figure: Price Ceilings and Valuation of Uses) Refer to the figure. Suppose a price ceiling of $15 goes into effect. If the highest value use and the lowest value use are equally likely to be satisfied, then the average value of the product is:
A) $45.
B) $30.
C) $25.
D) $35.

Question

Reference: Ref 8-10 (Figure: Price Ceilings and Valuation of Uses) Refer to the figure. Suppose a price ceiling of $15 goes into effect. If the highest value use and the lowest value use are equally likely to be satisfied, then the average value of the product is:
A) $45. 
B) $30. 
C) $25. 
D) $35.

Quizplus · Accepted Answer

The Answer of  Reference: Ref 8-10 (Figure: Price Ceilings and Valuation of Uses) Refer to the figure. Suppose a price ceiling of $15 goes into effect. If the highest value use and the lowest value use are equally likely to be satisfied, then the average value of the product is:
A) $45. 
B) $30. 
C) $25. 
D) $35.