Exam 4: Demand: the Benefit Side of the Market

As one moves down along a linear demand curve (i.e. ,from high-price,low-quantity combinations to low-price,high-quantity combinations),the price elasticity of demand becomes

The price elasticity of demand is a numerical measure of

If the demand curve for espresso is given by the equation P = 20 - 5Q,what is total expenditure when P = $5?

For which of the demand elasticities is the sign (positive or negative)important in interpreting the meaning?

During recessions,when workers lose their jobs and face reduced incomes,sales of durable goods (goods that last three years or more)decline.This implies that durable goods are

-Refer to the table above.The total revenue of coffee producers when the price is $3 per kilogram is

Given that Chris' marginal utility from his first taco is 15 and his marginal utility from the second taco is 12,one can infer that

Which of the following statements is FALSE?

If Karen's marginal utility from her 13^th pair of shoes is 15,then the marginal utility from her 14^th pair is likely to be

-Refer to the table above.If the price of Good B is $2 and the consumer purchases 4 units,then the extra utility from spending an extra dollar on Good B is

Beth has $20 to spend on apples and bananas.Apples cost $3 per kilogram and bananas cost $2 per kilogram.Using A to represent the quantity of apples and B to represent the quantity of bananas,Beth's budget constraint can be written as

If the ratio of the marginal utility of bread to the marginal utility of butter is 2,Brad can increase his welfare by consuming