Question 1

What characterizes a demand curve depicting a perfectly elastic demand?

Accepted Answer

The demand

Question 2

If a 3 percent change in price leads to a 3 percent change in quantity demanded, what is the corresponding price elasticity of demand?

Accepted Answer

The answer of If a 3 percent change in price...

Question 3

Goods that bring you utility are goods that

Accepted Answer

A)  enhance your well-being. 
B)  allow you to save money. 
C)  have an investment value. 
D)  are reasonably priced. 
A)  enhance your well-being. 
B)  allow you to save money. 
C)  have an investment value. 
D)  are reasonably priced.

Question 4

If a 12 percent price decrease leads to a 6 percent increase in quantity demanded, then the price elasticity of demand is _________.

Accepted Answer

The answer of If a 12 percent price decrease leads...

Question 5

Marginal utility is the change in _________ utility resulting from consuming one additional unit of a good.

Accepted Answer

The answer of Marginal utility is the change in _________...

Question 6

How does the slope of the demand curve reveal the relative elasticity of demand?

Accepted Answer

A relatively steep demand curv

Question 7

Table 4.4
  
-According to Table 4.4, what is the marginal utility of the second CD purchased?

Accepted Answer

A)  135 
B)  100 
C)  75 
D)  60 
A)  135 
B)  100 
C)  75 
D)  60

Question 8

What must be true of the number calculated for elasticity in a given range in order for us to consider the demand to be inelastic?

Accepted Answer

It must be

Question 9

Marginal means

Accepted Answer

A)  average. 
B)  controversial. 
C)  undesirable. 
D)  the incremental change. 
A)  average. 
B)  controversial. 
C)  undesirable. 
D)  the incremental change.

Question 10

What would cause demand to be fairly inelastic?

Accepted Answer

A)  There are few substitutes available for the good. 
B)  The transportation costs of getting the good to market are high. 
C)  Workers producing are unionized and earn high wages. 
D)  The good is produced using the most modern technology. 
A)  There are few substitutes available for the good. 
B)  The transportation costs of getting the good to market are high. 
C)  Workers producing are unionized and earn high wages. 
D)  The good is produced using the most modern technology.

Question 11

Economic theory asserts that

Accepted Answer

A)  if there is one good you like, you will spend all of your income on it. 
B)  the price of a good will affect whether a consumer chooses to purchase it. 
C)  changes in income levels do not affect consumer purchases. 
D)  everyone derives the same marginal utility from consuming the same items. 
A)  if there is one good you like, you will spend all of your income on it. 
B)  the price of a good will affect whether a consumer chooses to purchase it. 
C)  changes in income levels do not affect consumer purchases. 
D)  everyone derives the same marginal utility from consuming the same items.

Question 12

The only goods you don't purchase are those for which you expect the marginal utility to be zero or negative.

Accepted Answer

A) True 
 B)False

Question 13

Drew and Jake go to the amusement park, and they each take three rides on the roller coaster. Drew's total utility from the three rides is 85 utils; Jake's total utility is 70. What can we conclude about the marginal utility each of them has derived from the third ride?

Accepted Answer

A)  For Drew, the third ride provided 85 units of marginal utility. 
B)  For Jake, the third ride brought him no marginal utility. 
C)  The marginal utility of the third ride was higher for Drew than for Jake. 
D)  The marginal utility they each expected from the third ride was positive. 
A)  For Drew, the third ride provided 85 units of marginal utility. 
B)  For Jake, the third ride brought him no marginal utility. 
C)  The marginal utility of the third ride was higher for Drew than for Jake. 
D)  The marginal utility they each expected from the third ride was positive.

Question 14

No matter what the price of coffee is in the cafeteria, Jim spends $20 a week on coffee. We can conclude that

Accepted Answer

A)  Jim's demand for coffee is perfectly elastic. 
B)  Jim's demand for coffee is perfectly inelastic. 
C)  Jim buys fewer cups of coffee when the price is higher. 
D)  Jim buys fewer cups of coffee when the price is lower. 
A)  Jim's demand for coffee is perfectly elastic. 
B)  Jim's demand for coffee is perfectly inelastic. 
C)  Jim buys fewer cups of coffee when the price is higher. 
D)  Jim buys fewer cups of coffee when the price is lower.

Question 15

When marginal utility is zero,

Accepted Answer

A)  total utility is zero. 
B)  total utility is equal to marginal utility. 
C)  total utility is minimized. 
D)  total utility is maximized. 
A)  total utility is zero. 
B)  total utility is equal to marginal utility. 
C)  total utility is minimized. 
D)  total utility is maximized.

Question 16

If demand for a good is unit elastic, then an increase in price will reduce total consumer spending on the good.

Accepted Answer

A) True 
 B)False

Question 17

A baker raised his bread prices by 10 percent and found that the quantity of bread sold decreased by 10 percent. What happened to the total amount of sales revenue he took in from bread sales?

Accepted Answer

A)  It remained unchanged. 
B)  It increased. 
C)  It decreased. 
D)  We cannot determine the effect on total revenue unless we also know the slope of the demand curve for bread. 
A)  It remained unchanged. 
B)  It increased. 
C)  It decreased. 
D)  We cannot determine the effect on total revenue unless we also know the slope of the demand curve for bread.

Question 18

The price you are willing to pay for a concert ticket depends on the _________ _________ you expect to derive from attending the concert.

Accepted Answer

The answer of The price you are willing to pay...

Question 19

Total utility declines when marginal utility is _________.

Accepted Answer

The answer of Total utility declines when marginal utility is...

Question 20

How does the number and availability of substitutes affect the price elasticity of demand for a good?

Accepted Answer

As the number of available sub

What characterizes a demand curve depicting a perfectly elastic demand?

If a 3 percent change in price leads to a 3 percent change in quantity demanded, what is the corresponding price elasticity of demand?

Goods that bring you utility are goods that

If a 12 percent price decrease leads to a 6 percent increase in quantity demanded, then the price elasticity of demand is _________.

Marginal utility is the change in _________ utility resulting from consuming one additional unit of a good.

How does the slope of the demand curve reveal the relative elasticity of demand?

Table 4.4 -According to Table 4.4, what is the marginal utility of the second CD purchased?

What must be true of the number calculated for elasticity in a given range in order for us to consider the demand to be inelastic?

Marginal means

What would cause demand to be fairly inelastic?

Economic theory asserts that

The only goods you don't purchase are those for which you expect the marginal utility to be zero or negative.

Drew and Jake go to the amusement park, and they each take three rides on the roller coaster. Drew's total utility from the three rides is 85 utils; Jake's total utility is 70. What can we conclude about the marginal utility each of them has derived from the third ride?

No matter what the price of coffee is in the cafeteria, Jim spends $20 a week on coffee. We can conclude that

When marginal utility is zero,

If demand for a good is unit elastic, then an increase in price will reduce total consumer spending on the good.

A baker raised his bread prices by 10 percent and found that the quantity of bread sold decreased by 10 percent. What happened to the total amount of sales revenue he took in from bread sales?

The price you are willing to pay for a concert ticket depends on the _ _ you expect to derive from attending the concert.

Total utility declines when marginal utility is _________.

How does the number and availability of substitutes affect the price elasticity of demand for a good?

Economics and the World of Scarcity

The United States Within the World Economy

Demand and Supply

The Firm: Production and Cost

The Two Extremes: Perfect Competition and Pure Monopoly

In Between the Extremes: Imperfect Competition

Market and Government Failures

Labor Economics

Unemployment, Inflation, and the Business Cycle

Aggregate Demand and Supply

The Fiscal Policy Approach to Stabilization

Money and Our Banking System

The Monetary Policy Approach to Stabilization

How Economies Grow

Trading With Other Nations

Financing World Trade

Filters

Exam 4: Consumer Decision Making and Consumer Reaction to Price Changes

What characterizes a demand curve depicting a perfectly elastic demand?

If a 3 percent change in price leads to a 3 percent change in quantity demanded, what is the corresponding price elasticity of demand?

Goods that bring you utility are goods that

If a 12 percent price decrease leads to a 6 percent increase in quantity demanded, then the price elasticity of demand is _________.

Marginal utility is the change in _________ utility resulting from consuming one additional unit of a good.

How does the slope of the demand curve reveal the relative elasticity of demand?

Table 4.4 -According to Table 4.4, what is the marginal utility of the second CD purchased?

What must be true of the number calculated for elasticity in a given range in order for us to consider the demand to be inelastic?

Marginal means

What would cause demand to be fairly inelastic?

Economic theory asserts that

The only goods you don't purchase are those for which you expect the marginal utility to be zero or negative.

Drew and Jake go to the amusement park, and they each take three rides on the roller coaster. Drew's total utility from the three rides is 85 utils; Jake's total utility is 70. What can we conclude about the marginal utility each of them has derived from the third ride?

No matter what the price of coffee is in the cafeteria, Jim spends $20 a week on coffee. We can conclude that

When marginal utility is zero,

If demand for a good is unit elastic, then an increase in price will reduce total consumer spending on the good.

A baker raised his bread prices by 10 percent and found that the quantity of bread sold decreased by 10 percent. What happened to the total amount of sales revenue he took in from bread sales?

The price you are willing to pay for a concert ticket depends on the _________ _________ you expect to derive from attending the concert.

Total utility declines when marginal utility is _________.

How does the number and availability of substitutes affect the price elasticity of demand for a good?

Economics and the World of Scarcity

The United States Within the World Economy

Demand and Supply

The Firm: Production and Cost

The Two Extremes: Perfect Competition and Pure Monopoly

In Between the Extremes: Imperfect Competition

Market and Government Failures

Labor Economics

Unemployment, Inflation, and the Business Cycle

Aggregate Demand and Supply

The Fiscal Policy Approach to Stabilization

Money and Our Banking System

The Monetary Policy Approach to Stabilization

How Economies Grow

Trading With Other Nations

Financing World Trade

Filters

The price you are willing to pay for a concert ticket depends on the _ _ you expect to derive from attending the concert.