A market has four individuals considering buying a grill for his backyard.Further assume that grills come in only one size and model.Abe considers himself a grill-master,and finds a grill a necessity,so he is willing to pay $400 for a grill.Butch is a meat-lover,honing his grilling skills,and is willing to pay $350 for a grill.Collin just met the girl of his dreams,and she loves a good grilled steak,so in his effort to impress her he is willing to pay $320 for a grill.Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp,so he is willing to pay $200 for a grill.
Given the scenario described,if the market price of grills is $320,who participates in the market?
A)Only Abe,Butch,and Collin participate.
B)Only Collin and Daniel participate.
C)Only Abe and Butch participate.
D)Only Daniel participates.

Question

Quizplus · Accepted Answer

Abe, Butch, and Collin are willing to pay more than the market price of $320, so they would participate in the market. However, Daniel is only willing to pay $200, which is less than the market price, so he would not participate. Therefore, the correct answer is choice A.

A Market Has Four Individuals Considering Buying a Grill for His