Exam 20: Consumer Choice and Elasticity

A local Krispy Kreme doughnut shop reduced the price of its doughnuts from $4 per dozen to $3.50 per dozen,and as a result,the daily sales increased from 300 to 400 dozen.This indicates that the price elasticity of demand for the doughnuts was

A 10 percent increase in the price of sugar reduces sugar consumption by about 5 percent.The increase causes households to

If a large percentage increase in the price of a good results in a small percentage reduction in the quantity demanded of the good,demand is said to be

John's demand schedule for pizza is indicated below.If the current price of pizza is $1.10 per slice,what is John's consumer surplus if he buys five slices of pizza?

Which of the following is true regarding the price elasticity of demand?

If people spend 30 percent less on movie tickets when movie prices decline 15 percent,the price elasticity of demand for movie tickets at these prices must be

If the quantity demanded increases by 20 percent in response to a 10 percent decrease in price,demand is classified as

A car wash currently sells 30 car washes a day at a price of $5.Total daily revenue is now $150.If they lower their price to $3,

If people buy less chewing gum at every price when their incomes fall,then

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

A local restaurant offers an "all you can eat" ribs special.If a person pays $11.95,she can eat as many servings as she desires at no additional cost.Can you infer anything about her marginal utility from observing her eating behavior?

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

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

When the price of Nike tennis shoes goes from $100 to $80,the quantity demanded increases from 20 to 30 million.Over this price range,the absolute value of the price elasticity of demand is

Rebel Records announces it is cutting the prices of its bluegrass album titles by 25 percent.If Rebel is seeking to increase revenues,it must believe that the elasticity of demand for bluegrass albums is

If consumers would be willing to purchase the same quantity of a good no matter what its price was,the demand curve would

"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

The schedule of the amount of a product that consumers would be willing to purchase at alternative prices during a specific time period is the

If Russell values a ticket to a rock concert at $100 and is able to purchase it for only $40,he has received ____ in consumer surplus on his purchase.(Fill in the blank. )

A good with a high income elasticity is generally considered to be