Exam 7: Consumer Choice and Elasticity

When a good is more broadly defined,

"Because of the unseasonably cold weather, Florida orange growers expect (1) fewer bushels of oranges to be harvested, (2) a higher market price for oranges, and (3) larger total revenues from this year's crop." This statement would most likely be correct if the

"After eating nothing but fast-food hamburgers on spring break, I was anxious to return home and eat something different." This statement most clearly reflects the law of

If a 10 percent increase in income induced a group of consumers to reduce their yearly purchases of potatoes by 5 percent, for these consumers,

An increase in the price of computer diskettes leads to an increase in total expenditures on the diskettes. Which of the following is true for this price change?

Sarah recently got a 10 percent raise. She now purchases 30 percent more in groceries on a weekly basis. Sarah's income elasticity for groceries is

Jane received a 10 percent increase in her salary and purchased 20 percent more jewelry. For Jane, jewelry

If a 10 percent rise in price leads to a reduction in quantity demanded of more than 10 percent,

Table 7-1 Refer to Table 7-1. If the price increases from $1.00 to $1.50,

If Joe's income increased and as a result he purchased more wine and less fast food,

If Mr. Smith thinks the last dollar spent on shirts yields more satisfaction than the last dollar spent on cola, and Smith is a utility-maximizing consumer, he should

If the price of apples increases, total expenditures on apples will decline if

Use the figure below to answer the following question(s). Figure 7-6 In the price range between $3 and $4, the price elasticity of the demand curve depicted in Figure 7-6 is

If John's marginal benefit derived from the consumption of another candy bar is greater than the price of the candy bar,

If the income elasticity of a good is positive, we can conclude that the good is

If the price of steak rises from $6 to $10 per pound, and the quantity purchased falls from 90 to 70 pounds, the price elasticity of demand (in absolute value) is

Figure 7-14 Refer to Figure 7-14. Which supply curve represents perfectly inelastic supply?

If you compared the short-run demand and long-run demand for education at your college, you would almost certainly find that

Which of the following statements is true regarding the price elasticity of supply?

Demand will be more elastic when