A market has four individuals,each considering buying a grill for his backyard.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 $300,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 is willing to pay $400, which is greater than the market price of $300, so he participates.
Butch is willing to pay $350, which is also greater than the market price of $300, so he participates.
Collin is willing to pay $320, which is less than the market price of $300, so he does not participate.
Daniel is willing to pay $200, which is much less than the market price of $300, so he does not participate.
Therefore, only Abe, Butch, and Collin participate in the market.

A Market Has Four Individuals,each Considering Buying a Grill for His