Question 1

The longer the price change persists, ceteris paribus,

Accepted Answer

A)  the more consumers develop a preference for the good. 
B)  the more consumers lose interest in finding substitute goods. 
C)  the less is the elasticity of demand. 
D)  the greater the elasticity of demand. 
A)  the more consumers develop a preference for the good. 
B)  the more consumers lose interest in finding substitute goods. 
C)  the less is the elasticity of demand. 
D)  the greater the elasticity of demand.

Question 2

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

Accepted Answer

A)  100 
B)  75 
C)  50 
D)  43.5 
A)  100 
B)  75 
C)  50 
D)  43.5

Question 3

Table 4.3
  
-After consuming what quantity of soda does the consumer in Table 4.3 experience diminishing marginal utility?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

Question 4

What happens to total consumer spending on a good when there is a price increase in the range in which demand is elastic?

Accepted Answer

Total spen

Question 5

When the price elasticity of demand is less than one,

Accepted Answer

A)  the percentage change in quantity demanded is of a smaller magnitude than the percentage change in price. 
B)  the percentage change in quantity demanded is of a greater magnitude than the percentage change in price. 
C)  the demand is elastic. 
D)  consumers do not respond to price changes. 
A)  the percentage change in quantity demanded is of a smaller magnitude than the percentage change in price. 
B)  the percentage change in quantity demanded is of a greater magnitude than the percentage change in price. 
C)  the demand is elastic. 
D)  consumers do not respond to price changes.

Question 6

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

Accepted Answer

It must be

Question 7

Table 4.6
  
-According to the data in Table 4.6, what is the elasticity of demand between a price of $20 and a price of $16?

Accepted Answer

A)  1.25 
B)  0.90 
C)  0.75 
D)  0.60 
A)  1.25 
B)  0.90 
C)  0.75 
D)  0.60

Question 8

Table 4.4
  
-According to Table 4.4, what is the total utility when five CDs are purchased?

Accepted Answer

A)  285 
B)  245 
C)  220 
D)  82 
A)  285 
B)  245 
C)  220 
D)  82

Question 9

What does economic theory assume about human behavior?

Accepted Answer

A)  That people consume goods in order to derive utility. 
B)  That people do not take price into account in deciding what to buy. 
C)  That rational consumers will spend all of their money. 
D)  That people are unaware of the opportunity costs associated with consumption. 
A)  That people consume goods in order to derive utility. 
B)  That people do not take price into account in deciding what to buy. 
C)  That rational consumers will spend all of their money. 
D)  That people are unaware of the opportunity costs associated with consumption.

Question 10

Table 4.6
  
-According to the data in Table 4.6, what is the elasticity of demand between a price of $16 and a price of $12?

Accepted Answer

A)  5.82 
B)  1.85 
C)  0.85 
D)  0.58 
A)  5.82 
B)  1.85 
C)  0.85 
D)  0.58

Question 11

Table 4.5
  
-Using Table 4.5, what is the marginal utility of the fourth glass of water?

Accepted Answer

A)  250 
B)  50 
C)  25 
D)  10 
A)  250 
B)  50 
C)  25 
D)  10

Question 12

Regarding an addictive drug such as heroin, we discover that when the price of heroin increases

Accepted Answer

A)  the quantity demanded rises by a relatively small amount. 
B)  the quantity demanded rises by a relatively large amount. 
C)  the quantity demanded falls by a relatively large amount. 
D)  the quantity demanded falls by a relatively small amount. 
A)  the quantity demanded rises by a relatively small amount. 
B)  the quantity demanded rises by a relatively large amount. 
C)  the quantity demanded falls by a relatively large amount. 
D)  the quantity demanded falls by a relatively small amount.

Question 13

Table 4.3
  
-After consuming what quantity of pizza does the consumer in Table 4.3 experience diminishing marginal utility?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

The longer the price change persists, ceteris paribus,

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

Table 4.3 -After consuming what quantity of soda does the consumer in Table 4.3 experience diminishing marginal utility?

What happens to total consumer spending on a good when there is a price increase in the range in which demand is elastic?

When the price elasticity of demand is less than one,

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

Table 4.6 -According to the data in Table 4.6, what is the elasticity of demand between a price of $20 and a price of $16?

Table 4.4 -According to Table 4.4, what is the total utility when five CDs are purchased?

What does economic theory assume about human behavior?

Table 4.6 -According to the data in Table 4.6, what is the elasticity of demand between a price of $16 and a price of $12?

Table 4.5 -Using Table 4.5, what is the marginal utility of the fourth glass of water?

Regarding an addictive drug such as heroin, we discover that when the price of heroin increases

Table 4.3 -After consuming what quantity of pizza does the consumer in Table 4.3 experience diminishing marginal utility?

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

The longer the price change persists, ceteris paribus,

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

Table 4.3 -After consuming what quantity of soda does the consumer in Table 4.3 experience diminishing marginal utility?

What happens to total consumer spending on a good when there is a price increase in the range in which demand is elastic?

When the price elasticity of demand is less than one,

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

Table 4.6 -According to the data in Table 4.6, what is the elasticity of demand between a price of $20 and a price of $16?

Table 4.4 -According to Table 4.4, what is the total utility when five CDs are purchased?

What does economic theory assume about human behavior?

Table 4.6 -According to the data in Table 4.6, what is the elasticity of demand between a price of $16 and a price of $12?

Table 4.5 -Using Table 4.5, what is the marginal utility of the fourth glass of water?

Regarding an addictive drug such as heroin, we discover that when the price of heroin increases

Table 4.3 -After consuming what quantity of pizza does the consumer in Table 4.3 experience diminishing marginal utility?

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