Table 7-2 $\begin{array}{|c|c|c|c|} \hline\begin{array}{c} \text { Quantity of } \\ \text { Soup (cups) } \end{array} & \text { Total Utility } & \begin{array}{c} \text { Quantity of } \\ \text { Sandwiches } \end{array} & \text { Total Utility } \\ \hline 1 & 40 & 1 & 45 \\ \hline 2 & 60 & 2 & 75 \\ \hline 3 & 72 & 3 & 102 \\ \hline 4 & 82 & 4 & 120 \\ \hline 5 & 88 & 5 & 135 \\ \hline 6 & 90 & 6 & 145 \\ \hline \end{array}$ Table 7-2 above shows Keira's utility from soup and sandwiches. The price of soup is $2 per cup and the price of a sandwich is $3. Keira has $18 to spend on these two goods. -Refer to Table 7-2.What is Keira's marginal utility per dollar spent on the third cup of soup?

A) 72 utils B) 36 utils C) 12 utils D) 6 utils A) 72 utils B) 36 utils C) 12 utils D) 6 utils

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 inelastic?

A) over the entire range of prices B) between $12 and $16 C) between $8 and $16 D) between $2 and $8 A) over the entire range of prices B) between $12 and $16 C) between $8 and $16 D) between $2 and $8

A) another term that means opportunity cost. B) a term used to describe the cost of capital that the owners of a firm sink into their business. C) the highest valued alternative that must be given up to engage in an activity. D) a cost that has already been paid and cannot be recovered. A) another term that means opportunity cost. B) a term used to describe the cost of capital that the owners of a firm sink into their business. C) the highest valued alternative that must be given up to engage in an activity. D) a cost that has already been paid and cannot be recovered.

Exam 7: Consumer Choice and Elasticity

When the price of pistachio nuts is $7.50 per lb.the quantity demanded is 48 lbs.When the price of pistachio nuts 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 301

Table 7-3 Ice Cream Cones Lime Fizz Soda Quantity MU MU 1 30 40 2 25 35 3 20 26 4 15 18 5 10 15 6 5 7 -Refer to Table 7-3.The table above shows Lee's marginal utility from consuming ice cream cones and cans of Lime Fizz Soda.Select the phrase that completes the following statement."We can determine the number of ice cream cones and cans of Lime Fizz Soda Lee should consume to maximize his utility

(Multiple Choice)

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Question 302

The price elasticity of demand for Stork ice cream is -4.Suppose you're told that following a price increase,quantity demanded fell by 10 percent.What was the percentage change in price that brought about this change in quantity demanded?

(Multiple Choice)

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Question 303

What is the relationship between price elasticity of demand and total revenue?

(Essay)

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Question 304

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

(True/False)

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Question 305

If the absolute value of the price elasticity of demand for aspirin equals 0.8 then

(Multiple Choice)

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Question 306

If total utility increases at a decreasing rate as a consumer consumes more coffee,then marginal utility must

(Multiple Choice)

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Question 307

Table 7-2 Quantity of Soup (cups) Total Utility Quantity of Sandwiches Total Utility 1 40 1 45 2 60 2 75 3 72 3 102 4 82 4 120 5 88 5 135 6 90 6 145 Table 7-2 above shows Keira's utility from soup and sandwiches. The price of soup is $2 per cup and the price of a sandwich is $3. Keira has $18 to spend on these two goods. -Refer to Table 7-2.What is Keira's marginal utility per dollar spent on the third cup of soup?

(Multiple Choice)

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Question 308

During a study session for an economics exam with three other students,Peter Daltry commented on an example of a consumer who had to decide on number of slices of pizza and cups of Coca-Cola he would consume.Peter explained that "To maximize his utility this consumer must equate the marginal utility per dollar for pizza and Coca-Cola." Was Peter's analysis correct?

(Multiple Choice)

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Question 309

At a price of $100,Beachside Canoe Rentals rented 11 canoes.When it increased its rental price to $125,9 canoes were rented.Calculate the absolute value of the price elasticity of demand for canoe rentals using the midpoint formula.

(Multiple Choice)

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Question 310

The midpoint formula is used to measure the elasticity of demand between two points on a demand curve

(Multiple Choice)

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Question 311

Suppose the marginal utilities for the first three cans of soda are 100,80 and 60,respectively.The total utility received from consuming 2 cans is

(Multiple Choice)

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Question 312

Which of the following statements describes economists' attitudes regarding the influence of social factors on the choices consumers make?

(Multiple Choice)

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Question 313

Firms that automatically enroll their employees in retirement plans,giving them the option to opt-out instead of to opt-in,is an example of a form of behavioral economics known as

(Multiple Choice)

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Question 314

The income effect of a price increase for a Giffen good outweighs the substitution effect.

(True/False)

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Question 315

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 inelastic?

(Multiple Choice)

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Question 316

Figure 7-7 -Refer to Figure 7-7.The inelastic segment of the demand curve

(Multiple Choice)

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Question 317

The price elasticity of demand is equal to

(Multiple Choice)

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Question 318

A sunk cost is

(Multiple Choice)

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Question 319

Which of the following is used to explain why a consumer's willingness to buy Microsoft Office increases as the number of other people who use Microsoft Office increases?

(Multiple Choice)

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Question 320

When the price of pistachio nuts is $7.50 per lb.the quantity demanded is 48 lbs.When the price of pistachio nuts 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

The price elasticity of demand for Stork ice cream is -4.Suppose you're told that following a price increase,quantity demanded fell by 10 percent.What was the percentage change in price that brought about this change in quantity demanded?

What is the relationship between price elasticity of demand and total revenue?

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

If the absolute value of the price elasticity of demand for aspirin equals 0.8 then

If total utility increases at a decreasing rate as a consumer consumes more coffee,then marginal utility must

At a price of $100,Beachside Canoe Rentals rented 11 canoes.When it increased its rental price to $125,9 canoes were rented.Calculate the absolute value of the price elasticity of demand for canoe rentals using the midpoint formula.

The midpoint formula is used to measure the elasticity of demand between two points on a demand curve

Suppose the marginal utilities for the first three cans of soda are 100,80 and 60,respectively.The total utility received from consuming 2 cans is

Which of the following statements describes economists' attitudes regarding the influence of social factors on the choices consumers make?

Firms that automatically enroll their employees in retirement plans,giving them the option to opt-out instead of to opt-in,is an example of a form of behavioral economics known as

The income effect of a price increase for a Giffen good outweighs the substitution effect.

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 inelastic?

Figure 7-7 -Refer to Figure 7-7.The inelastic segment of the demand curve

The price elasticity of demand is equal to

A sunk cost is

Which of the following is used to explain why a consumer's willingness to buy Microsoft Office increases as the number of other people who use Microsoft Office increases?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

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