A) are costs associated with repairing something you already own. B) are important for optimal decision making. C) are costs that have already been paid and cannot be recaptured in any significant way. D) are costs that firms sink into marketing. A) are costs associated with repairing something you already own. B) are important for optimal decision making. C) are costs that have already been paid and cannot be recaptured in any significant way. D) are costs that firms sink into marketing.

Table 7-9 \[\begin{array} { | c | c | } \hline \begin{array} { c } \text { Price per Pound } \\ \text { (dollars) } \end{array} & \begin{array} { c } \text { Quantity of Cheese } \\ \text { Demanded (pounds) } \end{array} \\ \hline \$ 16 & 3 \\ \hline 14 & 4 \\ \hline 12 & 5 \\ \hline 10 & 6 \\ \hline 8 & 7 \\ \hline 6 & 8 \\ \hline 4 & 9 \\ \hline 2 & 10 \\ \hline \end{array}\] -Refer to Table 7-9.Over what range of prices is the demand elastic?

A) over the entire range of prices B) between $14 and $16 C) between $8 and $16 D) between $2 and $8 A) over the entire range of prices B) between $14 and $16 C) between $8 and $16 D) between $2 and $8

Table 7-10 The publisher of a magazine gives his staff the following information: \[\begin{array} { | l | l | } \hline \text { Current price } & \$ 2.00 \text { per issue } \\ \hline \text { Current sales } & 150,000 \text { copies per month } \\ \hline \text { Current revenue } & \$ 300,000 \text { per month } \\ \hline \text { Current total costs } & \$ 450,000 \text { per month } \\ \hline \end{array}\] He tells the staff, "Our costs are currently $150,000 more than our revenues each month.I propose to eliminate this problem by raising the price of the magazine to $3.00 per issue.This will result in our revenue being exactly equal to our cost." -Refer to Table 7-10.Which of the following statements is correct?

A) The publisher's analysis is correct only if the demand is perfectly elastic. B) The publisher's analysis is correct only if the demand is elastic. C) The publisher's analysis is correct only if the demand is perfectly inelastic. D) The publisher's analysis is correct only if the demand is unit-elastic. A) The publisher's analysis is correct only if the demand is perfectly elastic. B) The publisher's analysis is correct only if the demand is elastic. C) The publisher's analysis is correct only if the demand is perfectly inelastic. D) The publisher's analysis is correct only if the demand is unit-elastic.

Exam 7: Consumer Choice and Elasticity

If at a price of $50,Ghani sells 20 hand-made leather cell-phone covers but at a price of $60,zero units are sold.Based on this information,the demand for his cell-phone covers is

(Multiple Choice)

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Question 41

When Audrina raised the price of her home made cookies,her total revenue increased.This suggests that the demand for Audrina's cookies is elastic.

(True/False)

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Question 42

When is demand perfectly elastic? When is demand perfectly inelastic? What are the values of the price elasticity of demand when demand is perfectly elastic or perfectly inelastic? What do perfectly elastic and perfectly inelastic demand curves look like?

(Essay)

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Question 43

If the demand for a product is elastic,the quantity demanded changes by a smaller percentage than the percentage change in price.

(True/False)

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Question 44

An economist observes two consumers in a supermarket.One of the consumers buys a case of Coca-Cola and the other buys a case of Pepsi-Cola.Both colas sell for the same price and the ages and incomes of the consumers are also the same.Based on this information,how would the economist explain the consumers' choices?

(Multiple Choice)

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Question 45

The demand for gasoline in the short run is

(Multiple Choice)

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Question 46

If the price elasticity of demand for canned soup is estimated at -1.62.What happens to sales revenue if the price of canned soup rises?

(Multiple Choice)

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Question 47

When the price of pistachio nuts is $7.50 per lb.the quantity demanded is 48 lbs.When the price of peaches is $9.00 per lb.the quantity demanded is 40 lbs.When the midpoint formula is used to measure the price elasticity of demand we can say that the demand for pistachio nuts is

(Multiple Choice)

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Question 48

Sunk costs

(Multiple Choice)

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Question 49

Facing stiff competition,Hendrix College,a small liberal arts institution in Conway,Ark.,decided two years ago to bolster its academic offerings,promising students at least three hands-on experiences outside the classroom,including research,internships and service projects.Although it raised tuition and fees by 29 percent,enrollment in the freshman class rose by 37 percent. Source: Jonathan D.Glater and Alan Finder,"In New Twist on Tuition Game,Popularity Rises With the Price," New York Times,December 12,2006 Based on the information above,the demand for Hendrix College education is

(Multiple Choice)

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Question 50

According to an article in the Wall Street Journal,unlike airlines,even elite hotels don't have sophisticated systems that can react quickly to changes in demand.Even if they could,many hoteliers say people don't respond that much to lower rates."We've tested this,cutting our rates by $50 [per night],and we didn't see an appreciable response in occupancy," says Jim Schultenover,a vice president for Ritz-Carlton. Source: Jesse Drucker,"In Times of Belt-Tightening,We Seek Reasonable Rates," Wall Street Journal,April 6,2001. Based on the information above,the demand for hotel rooms is

(Multiple Choice)

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Question 51

Table 7-9 Price per Pound (dollars) Quantity of Cheese Demanded (pounds) \ 16 3 14 4 12 5 10 6 8 7 6 8 4 9 2 10 -Refer to Table 7-9.Over what range of prices is the demand elastic?

(Multiple Choice)

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Question 52

If a consumer receives 22 units of marginal utility for consuming the first can of soda,20 units from consuming the second,and 15 from the third,the total utility of consuming the three units is

(Multiple Choice)

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Question 53

Consider a demand curve that has a constant elasticity value of 0.What happens to quantity demanded and total revenue when price increases?

(Multiple Choice)

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Question 54

Suppose a decrease in the supply of wheat results in an increase in revenue.This indicates that

(Multiple Choice)

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Question 55

Table 7-10 The publisher of a magazine gives his staff the following information: Current price \ 2.00 per issue Current sales 150,000 copies per month Current revenue \ 300,000 per month Current total costs \ 450,000 per month He tells the staff, "Our costs are currently $150,000 more than our revenues each month.I propose to eliminate this problem by raising the price of the magazine to $3.00 per issue.This will result in our revenue being exactly equal to our cost." -Refer to Table 7-10.Which of the following statements is correct?

(Multiple Choice)

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Question 56

The additional utility that George receives from consuming one more slice of pizza is called

(Multiple Choice)

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Question 57

Avner is maximizing total utility by buying sports magazines and protein supplements.For him to buy more sports magazines

(Multiple Choice)

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Question 58

Figure 7-1 -Refer to Figure 7-1.Which of the following statements is true?

(Multiple Choice)

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Question 59

In a survey of consumers,Daniel Kahneman,Jack Knetsch and Richard Thaler asked their opinion of a hardware store's decision to

(Multiple Choice)

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Question 60

Showing 41 - 60 of 380

If at a price of $50,Ghani sells 20 hand-made leather cell-phone covers but at a price of $60,zero units are sold.Based on this information,the demand for his cell-phone covers is

When Audrina raised the price of her home made cookies,her total revenue increased.This suggests that the demand for Audrina's cookies is elastic.

When is demand perfectly elastic? When is demand perfectly inelastic? What are the values of the price elasticity of demand when demand is perfectly elastic or perfectly inelastic? What do perfectly elastic and perfectly inelastic demand curves look like?

If the demand for a product is elastic,the quantity demanded changes by a smaller percentage than the percentage change in price.

The demand for gasoline in the short run is

If the price elasticity of demand for canned soup is estimated at -1.62.What happens to sales revenue if the price of canned soup rises?

When the price of pistachio nuts is $7.50 per lb.the quantity demanded is 48 lbs.When the price of peaches is $9.00 per lb.the quantity demanded is 40 lbs.When the midpoint formula is used to measure the price elasticity of demand we can say that the demand for pistachio nuts is

Sunk costs

Table 7-9 Price per Pound (dollars) Quantity of Cheese Demanded (pounds) \ 16 3 14 4 12 5 10 6 8 7 6 8 4 9 2 10 -Refer to Table 7-9.Over what range of prices is the demand elastic?

If a consumer receives 22 units of marginal utility for consuming the first can of soda,20 units from consuming the second,and 15 from the third,the total utility of consuming the three units is

Consider a demand curve that has a constant elasticity value of 0.What happens to quantity demanded and total revenue when price increases?

Suppose a decrease in the supply of wheat results in an increase in revenue.This indicates that

The additional utility that George receives from consuming one more slice of pizza is called

Avner is maximizing total utility by buying sports magazines and protein supplements.For him to buy more sports magazines

Figure 7-1 -Refer to Figure 7-1.Which of the following statements is true?

In a survey of consumers,Daniel Kahneman,Jack Knetsch and Richard Thaler asked their opinion of a hardware store's decision to

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