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.

Exam 7: Consumer Choice and Elasticity

Molly received an autographed poster of David Hasselhoff for her 21st birthday.Her friend Helga offered her $50 for the poster,but Molly refused to sell the poster even though she knows she would never pay that much to replace it if it was ever damaged or destroyed.Explain this inconsistency in Molly's behavior.

(Essay)

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Question 61

Many economists do not believe that network externalities lock consumers into the use of products that have technology inferior to other,similar products.These economists believe that

(Multiple Choice)

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Question 62

Sunk costs

(Multiple Choice)

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Question 63

A demand curve that is horizontal indicates that the commodity

(Multiple Choice)

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Question 64

If at a price of $24,Octavia sells 36 home-grown orchids and at $30 she sells 24 home-grown orchids,the demand for her orchids is

(Multiple Choice)

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Question 65

If Ewan is consuming his utility maximizing bundle and the price of one good falls,what happens to the marginal utility per dollar spent on this good (MU/P),and what should Ewan do?

(Multiple Choice)

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Question 66

Which of the following is a common mistake consumers commit when they make decisions?

(Multiple Choice)

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Question 67

Figure 7-5 -Refer to Figure 7-5.Which of the following statements is true about the price elasticity of demand?

(Multiple Choice)

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Question 68

Carolyn spends her income on popular magazines and music CDs.If the price of a CD is four times the price of a magazine and if Carolyn is maximizing her utility,she buys

(Multiple Choice)

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Question 69

Consider the following factors: a.culture B.religion C.customs D.prices E.income Which of the factors above are likely to influence the choices consumers make?

(Multiple Choice)

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Question 70

If,when price changes by 35 percent,the quantity demanded changes by 7 percent,then the absolute value of the price elasticity of demand is 5.

(True/False)

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Question 71

If a firm's goal is to maximize revenue,it will price its product to correspond to the unit-elastic segment of its demand curve.

(True/False)

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Question 72

If you received negative marginal utility from consuming the 4th slice of pizza,then your total utility from 4 slices of pizza must be less than your total utility from 3 slices of pizza.

(True/False)

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Question 73

Suppose the demand for milk is relatively inelastic.What happens to sales revenue if the government imposes a price floor above the free market equilibrium price in the market for milk?

(Multiple Choice)

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Question 74

Which of the following demonstrates the endowment effect?

(Multiple Choice)

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Question 75

Along a downward-sloping linear demand curve,

(Multiple Choice)

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Question 76

Arnie Ziffel has $20 per week to spend on any combination of pineapples and green tea.The price of a pineapple is $4 and the price of a bottle of green tea is $2.The table below shows Arnie's utility values.Use the table to answer the questions that follow the table. a.Complete the table by filling in the blank spaces. b.Suppose Arnold purchases 4 pineapples and 2 bottles of green tea.Is he consuming the optimal consumption bundle? If so,explain why.If not,what combination should he buy and why?

(Essay)

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Question 77

Marginal utility is the

(Multiple Choice)

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Question 78

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 79

The endowment effect suggests that that people

(Multiple Choice)

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Question 80

Showing 61 - 80 of 193

Many economists do not believe that network externalities lock consumers into the use of products that have technology inferior to other,similar products.These economists believe that

Sunk costs

A demand curve that is horizontal indicates that the commodity

If at a price of $24,Octavia sells 36 home-grown orchids and at $30 she sells 24 home-grown orchids,the demand for her orchids is

If Ewan is consuming his utility maximizing bundle and the price of one good falls,what happens to the marginal utility per dollar spent on this good (MU/P),and what should Ewan do?

Which of the following is a common mistake consumers commit when they make decisions?

Figure 7-5 -Refer to Figure 7-5.Which of the following statements is true about the price elasticity of demand?

Carolyn spends her income on popular magazines and music CDs.If the price of a CD is four times the price of a magazine and if Carolyn is maximizing her utility,she buys

Consider the following factors: a.culture B.religion C.customs D.prices E.income Which of the factors above are likely to influence the choices consumers make?

If,when price changes by 35 percent,the quantity demanded changes by 7 percent,then the absolute value of the price elasticity of demand is 5.

If a firm's goal is to maximize revenue,it will price its product to correspond to the unit-elastic segment of its demand curve.

If you received negative marginal utility from consuming the 4th slice of pizza,then your total utility from 4 slices of pizza must be less than your total utility from 3 slices of pizza.

Suppose the demand for milk is relatively inelastic.What happens to sales revenue if the government imposes a price floor above the free market equilibrium price in the market for milk?

Which of the following demonstrates the endowment effect?

Along a downward-sloping linear demand curve,

Marginal utility is the

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 endowment effect suggests that that people

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

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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

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Comparative Advantage,international Trade,and Exchange Rates

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