Exam 4: Demand: the Benefit Side of the Market

The correct relationship between the price elasticity of demand and total revenue is that,if demand is ___________,a price increase will ______________ total revenue.

If consumers completely cease purchasing a product when its price increases by any amount,demand is classified as being

For any vertical demand curve,the price elasticity of demand is

-Refer to the table above.Market demand for coffee at a price of $5 per kilogram is

A consumer purchases quantities of good A and good B in accordance with the rational spending rule.An increase in the price of good A causes the consumer to

-On the basis of the above table,it appears that __________ has the highest demand for hamburger and ________ has the lowest.

For two goods,A and B,the rational spending rule is expressed as

Assume that the ratio of the marginal utility of bread to the marginal utility of butter is 2,and that the price of bread is equal to the price of butter.Brad can increase his welfare by consuming

If the slope of the demand curve is zero,demand will be

The time one spends researching the performance and fuel economy of new cars on the Internet is an example of a(n)

If the ratios of prices and the ratios of marginal utilities are not equal,then Mary,who has extra money to spend,can increase her welfare by

The _________ is the change in the quantity demanded of a good whose relative price has changed while a consumer's real income is held constant.

If the price elasticity of demand for the latest Coldplay CD is 1.4,this means that

The extra utility gained from consuming an extra unit of a good measures

The price elasticity of demand for apartments is 1.3,while the price elasticity of demand for toothpicks is 0.4.The likely reason for the difference is that

-Refer to the table above.Total expenditure on coffee when the price is $4 per kilogram is

Jack is maximizing utility by consuming soft drinks at $2 each and four pieces of pizza.The last soft drink gave him 100 units of utility and the last piece of pizza gave him 50 units of utility.The price of a piece of pizza is

-Refer to the table above.Demand,between $3.00 and $3.20,is

To increase total revenue,firms with ______ demand should lower price and firms with ______ demand should increase price.

In the 1990s,Canadians bought larger vehicles,such as minivans and SUVs,which used more gasoline than smaller cars.We can conclude that consumers were responding to the fact that the