A) price per unit times quantity sold. B) price per unit times quantity supplied. C) price per unit times change in quantity sold. D) change in price per unit times quantity sold. A) price per unit times quantity sold. B) price per unit times quantity supplied. C) price per unit times change in quantity sold. D) change in price per unit times quantity sold.

A) are theoretical and have never been discovered in the real world. B) have not existed since prior to the Industrial Revolution. C) were proven to exist in the 1890s by Sir Robert Giffen. D) were not shown to actually exist until 2006. A) are theoretical and have never been discovered in the real world. B) have not existed since prior to the Industrial Revolution. C) were proven to exist in the 1890s by Sir Robert Giffen. D) were not shown to actually exist until 2006.

Exam 7: Consumer Choice and Elasticity

Research by Daniel Kahneman,Jack Knetch,and Richard Thaler has shown that companies like airlines were explicitly able to include a fuel surcharge in their prices because

(Multiple Choice)

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Question 161

If,when you consume another piece of candy,your marginal utility is zero,then

(Multiple Choice)

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Question 162

Eliza consumes 12 cappuccinos and 8 apple turnovers per week.The price of cappuccino is $4 each and apple turnovers are $1 each. a.What is the amount of income allocated to cappuccino and apple turnover consumption? b.What is the price ratio (the price of cappuccino relative to the price of apple turnovers)? c.Explain the meaning of the price ratio you computed. d.If Eliza maximize utility,what is the ratio of the marginal utility of cappuccino to the marginal utility of apple turnovers? e.If the price of apple turnovers falls,will Eliza consume more apple turnovers,fewer apple turnovers or the same amount of apple turnovers? Explain your answer using the rule of equal marginal utility per dollar.

(Essay)

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Question 163

Price elasticity of demand measures

(Multiple Choice)

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Question 164

A common mistake made by consumers is the failure to take into account the sunk costs of their actions.

(True/False)

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Question 165

Identify the one statement that does not demonstrate how social effects influence consumer choice.

(Multiple Choice)

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Question 166

Table 7-1 Keegan has $30 to spend on Pita Wraps and Bubble Tea.The price of a Pita Wrap is $6 and the price of a glass of Bubble Tea is $3.Table 7-1 shows his total utility from different quantities of the two items. -Refer to Table 7-1.If Keegan can drink all the bubble tea he wants for free,how many glasses will he consume?

(Multiple Choice)

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Question 167

If a consumer receives 20 units of utility from consuming two candy bars,and 25 units of utility from consuming three candy bars,the marginal utility of the third candy bar is

(Multiple Choice)

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Question 168

Table 7-2 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.Suppose Keira's income increases from $18 to $23 but prices have not changed.What is her utility maximizing bundle now?

(Multiple Choice)

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Question 169

Total revenue equals

(Multiple Choice)

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Question 170

Suppose a decrease in the supply of bottled water results in a decrease in revenue.This indicates that

(Multiple Choice)

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Question 171

At a price of $8 per dozen,Chuy sells 40 dozen homemade tamales per week.When he raised her price to $12 per dozen,he still sold 40 dozen per week.Based on this information,the demand for his tamales is

(Multiple Choice)

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Question 172

If,as a person consumes more and more of a good,each additional unit adds less satisfaction than the previous unit consumed,we are seeing the workings of

(Multiple Choice)

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Question 173

A standard which came to the market first,such as the QWERTY letter layout in typewriters,can become entrenched (this layout is still used in computer keyboards today).What is this phenomenon called?

(Multiple Choice)

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Question 174

Giffen goods

(Multiple Choice)

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Question 175

As a consumer consumes more and more of a product in a particular time period,eventually marginal utility

(Multiple Choice)

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Question 176

Consumers have to make tradeoffs in deciding what to consume because

(Multiple Choice)

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Question 177

If demand is inelastic,the absolute value of the price elasticity of demand is

(Multiple Choice)

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Question 178

Apple introduced the iPhone to the market in June 2007.Within two months,it had become clear that the price elasticity of demand for iPhones was

(Multiple Choice)

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Question 179

With the increased usage of cell phone services,what has happened to the price elasticity of demand for land-line telephone services?

(Multiple Choice)

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Question 180

Showing 161 - 180 of 193

Research by Daniel Kahneman,Jack Knetch,and Richard Thaler has shown that companies like airlines were explicitly able to include a fuel surcharge in their prices because

If,when you consume another piece of candy,your marginal utility is zero,then

Price elasticity of demand measures

A common mistake made by consumers is the failure to take into account the sunk costs of their actions.

Identify the one statement that does not demonstrate how social effects influence consumer choice.

If a consumer receives 20 units of utility from consuming two candy bars,and 25 units of utility from consuming three candy bars,the marginal utility of the third candy bar is

Total revenue equals

Suppose a decrease in the supply of bottled water results in a decrease in revenue.This indicates that

At a price of $8 per dozen,Chuy sells 40 dozen homemade tamales per week.When he raised her price to $12 per dozen,he still sold 40 dozen per week.Based on this information,the demand for his tamales is

If,as a person consumes more and more of a good,each additional unit adds less satisfaction than the previous unit consumed,we are seeing the workings of

A standard which came to the market first,such as the QWERTY letter layout in typewriters,can become entrenched (this layout is still used in computer keyboards today).What is this phenomenon called?

Giffen goods

As a consumer consumes more and more of a product in a particular time period,eventually marginal utility

Consumers have to make tradeoffs in deciding what to consume because

If demand is inelastic,the absolute value of the price elasticity of demand is

Apple introduced the iPhone to the market in June 2007.Within two months,it had become clear that the price elasticity of demand for iPhones was

With the increased usage of cell phone services,what has happened to the price elasticity of demand for land-line telephone services?

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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