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ECON 110 Quiz 2 Supply and Demand Consumer Demand solutions complete answers
ECON 110 Quiz 2 Supply and Demand Consumer Demand solutions complete answers
On average, consumers spend the largest portion of their income on food.
In a market, the equilibrium price is determined by
Consumers provide money as an inflow to which of the following markets?
The inverse relationship between quantity demanded and price for a good can be explained by the law of diminishing marginal utility.
Which of the following is NOT a determinant of demand?
Ceteris paribus, the law of demand says that
Market participants include
The supply curve will shift to the right if the cost of factor inputs decrease.
Which of the following is most likely to be elastic with respect to demand?
The largest portion of the average U.S. consumer’s dollar is spent on:
Which of the following is relatively inelastic with respect to demand?
Which of the following would cause both the equilibrium price and the equilibrium quantity to decrease?
Which of the following is a constraint that motivates economic interactions?
Producers supply goods and services to the product market.
The 2009 tax increase of 20 cents per pack of cigarettes in San Francisco will most likely generate only modest revenues because:
In economic theory, utility refers to the:
The increase in federal taxes on cigarettes from $0.39 to $1.01 in 2009 had only a modest effect on quantity demanded, indicating:
Marginal utility refers to the:
For consumers, most market activity can be explained by the goal of
The assumption of ceteris paribus is important because it:
Given income and resource constraints, the market mechanism typically arrives at the _______ outcome when markets work well.
Rent controls are an example of
The second largest portion of the average U.S. consumer’s dollar is spent on:
Which of the following is true about American spending habits?
The supply curve of an individual producer is based on the expected price in the market.
The demand for lunch at a local restaurant is currently price elastic for college students but price inelastic for businesspeople. In order to increase total revenue, the restaurant should
Supply is a measure of the quantity of a product that
The factor market and the product market are essentially the same thing.
When the additional satisfaction from a good or service declines as more of it is consumed, this illustrates the law of:
Which of the following is true if there is a surplus of a particular good?
A decrease in price leads to a decrease in quantity demanded.
The market supply of a particular good
When income changes, there is a _____ the _____ curve.
A market surplus occurs when
If demand is unitary elastic, then a price cut:
The price of energy drinks increases by twenty percent and the demand for energy drink falls by fifteen percent. Based on this information, the price elasticity of demand is:
Economists make a distinction between changes in quantity demanded and changes in demand?
Ceteris Paribus, the quantity demanded of a good will decrease in respone to?
A demand schedule refers to the combinations of price and quantity that represent the?
In order to demand a good, the buyer must?
Ceteris paribus, which of the following will cause the demand for pizza to increase in a college town?
According to the law of demand, a demand curve?
According to the law of demand, a change in_______causes a movement along the demand curve?
The quantity of a good demanded in a given time period increases as the price falls, ceteris paribus. This is known as?
Ceteris paribus, a change in which of the following would be LEAST likely to cause a shift in the demand curve for jackets?
Ceteris paribus, according to the law of demand, if the price of a computer game increases from $25 to $30, the?
Which of the following is not a factor of production?
Which of the follwing situatuions is sufficient to represent current demand of a car?
The market demand for a particular good indicates?
A change in demand means there has been a shift in the demand curve, and a change in the quantity demanded?
Ceteris paribus, the law of demand says that?
Ceteris Paribus
Which of the following is associated with microeconomics?
Price elasticity of demand shows how:
A News Wire article in the text indicates that North Korea is expanding its missile programs. Assume North Korea is currently on its production possibilities curve. If the increase in missile production results in a decrease in food production, this is an example of:
The law of demand and the law of diminishing marginal utility are related since both:
If the price elasticity of demand is 1.8, then a 30 percent decrease in the price of the good will lead to a _______ percent increase in the quantity demanded.
If the actual market price is held to $10 per unit, there will be a
In terms of income distribution, if a person moves from the lowest fifth of households to the highest fifth over many years, this is known as
A market shortage occurs when
The objective of advertising, from an economic perspective, is to shift the demand curve to the:
A market
Capital intensive means
If supply is unchanged, a decrease in the demand for tacos will cause the equilibrium price to
The demand curve will shift to the right if the number of buyers increases, ceteris paribus.
The equilibrium price in the worldwide truck market is
The second largest portion of the average U.S. consumer's dollar is spent on:
Consumers provide money as an inflow to which of the following markets?
Ceteris paribus, a change in which of the following would be LEAST likely to cause a shift in the demand curve for jackets?
Producers _______ factors of production in the _______ market.
Market price is always the same as equilibrium price.
Economic growth means:
Which of the following is the best reason why we typically pay a relatively low price for water?
The opportunity cost of playing tennis with your friend is
In a market, the equilibrium price is determined by
The demand for _______ is relatively inelastic.
In a monopoly situation, government regulation is incapable of improving market outcomes.
If demand is inelastic, then:
Consider the market for desktop computers. Consumers decide they like laptop computers better than desktops.
When a firm advertises, it is attempting to:
Which of the following would cause both the equilibrium price and the equilibrium quantity to decrease?
The essential feature of the market mechanism is
The main focus of economic studies concerns
Because the economy is so complex, it is impossible to construct a theory about how it works.
Macroeconomics focuses on:
In a market characterized as a monopoly
Which of the following is NOT a reason why the United States is able to produce such high levels of GDP?
If the price of a product decreases, ceteris paribus, then the quantity demanded of the good will ______ and the quantity supplied will _______.
Ceteris paribus, a successful advertising campaign causes the demand curve for a good to become steeper.
Real GDP is a more accurate measure of economic growth than nominal GDP because
A price floor is
If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price
Recent prices increases for Starbucks coffee will cause an increase in revenue for the company if:
If the demand for a good is elastic, when price increases, total revenue will
If the price elasticity of demand for Baja Fresh tacos is 2.5, then Baja Fresh can:
If demand is elastic, then:
Ceteris paribus, a price increase will cause total revenue to decrease for a firm if the demand for its product is:
If demand is unitary elastic, then a price cut:
The market demand curve is calculated by:
The demand for _______ is relatively elastic.
The price of energy drinks increases by twenty percent and the demand for energy drink falls by fifteen percent. Based on this information, the price elasticity of demand is:
The objective of advertising, from an economic perspective, is to shift the demand curve to the:
If quantity demanded rises only slightly following a moderate price cut, then the response would be considered:
Which of the following does NOT influence the price elasticity of demand?
When the additional satisfaction from a good or service declines as more of it is consumed, this illustrates the law of:
The law of demand and the law of diminishing marginal utility are related since both:
If the price of potato chips rises and the demand for pretzels rises, then potato chips and pretzels are:
The goals of the principal participants in the economy are to maximize:
For consumers, most market activity can be explained by the goal of:
Which of the following is a goal of businesses?
For government, most market activity can be explained by the goal of:
Which of the following is a constraint that motivates economic interactions?
Economic interactions with others are necessary because:
A market:
A market exists for the sale and purchase of:
People benefit by participating in the market because:
Market participants include:
Which of the following is not a factor of production?
Any place where factors of production are bought and sold is a:
Consumers _______ factors of production in the _______ market.
Producers _______ factors of production in the _______ market.
A market in which finished goods and services are exchanged is a:
Which of the following participates in the product market?
In the U.S. economy, foreigners participate in:
The direct exchange of one good for another is known as:
Consumers:
Producers:
In order to demand a good, the buyer must:
Which of the following situations is sufficient to represent current demand for a car?
A demand schedule refers to the combinations of price and quantity that represent the:
Ceteris paribus, _______ can change without shifting the demand curve for jackets.
According to the law of demand, a demand curve:
The quantity of a good demanded in a given time period increases as the price falls, which is known as:
According to the law of demand:
According to the law of demand, a change in _______ causes a movement along the demand curve.
Ceteris paribus, the quantity demanded of a good will decrease in response to:
Ceteris paribus, according to the law of demand, if the price of a computer game increases from $25 to $30, the:
Which of the following will not cause a shift in the demand curve for a good?
Which of the following is not a determinant of demand?
Which of the following will not shift the demand curve for natural gas?
Ceteris paribus, which of the following will cause the demand for peanut butter to decrease?
Ceteris paribus, which of the following will cause the demand curve for basketballs to shift to the left?
Ceteris paribus, the demand curve for a good will shift to the right in response to:
Ceteris paribus, which of the following will cause the demand for pizza to increase in a college town?
Ceteris paribus means:
Economists make a distinction between changes in quantity demanded and changes in demand:
A change in demand means there has been a shift in the demand curve, and a change in the quantity demanded:
The market demand for a particular good indicates:
The market supply of a particular good:
Which of the following would not cause the market supply of cell phones to change?
Which of the following is a determinant of supply?
The quantity of a good that suppliers are willing and able to supply at a given price in a given time period depends on:
Which of the following provides the best example of the law of supply?
Ceteris paribus, according to the law of supply, if the price of product Z increases from $6 to $8, then the:
Ceteris paribus, according to the law of supply, if the price of lawn mowing decreases from $50 per lawn to $45 per lawn, then the:
A movement along the supply curve is the same as a:
Ceteris paribus, which of the following will cause a rightward shift of the supply curve for plasma TVs?
An increase in the supply of frozen yogurt will take place when:
Which of the following events would cause a rightward shift in the supply curve for automobiles?
Ceteris paribus, which of the following will cause the supply of milk shakes to increase?
Ceteris paribus, which of the following will cause the supply of paper to decrease?
Which of the following will cause a leftward shift of the supply curve for houses?
Which of the following will cause a leftward shift of the supply curve for electricity?
A market is said to be in equilibrium when:
In a market, the equilibrium price is determined by:
The equilibrium price and quantity are determined by the:
A market shortage occurs when:
When there is a shortage in a market, prices are likely to:
If a market shortage exists:
A market surplus occurs when:
When there is a surplus in a market, prices are likely to fall because:
If a market surplus exists:
If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:
If demand is constant, a leftward shift in the supply curve will result in:
The price of chocolate candy bars rises. This could be due to:
If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:
Which of the following would cause a decrease in the price of automobiles?
If supply is unchanged, a decrease in the demand for soft drinks will cause equilibrium price to:
If supply is constant, a decrease in the demand for potato chips will cause:
If supply is unchanged, a decrease in the demand for tacos will cause the equilibrium price to:
If supply is unchanged, a rightward shift in the demand curve for gourmet ice cream will result in:
In the market for web design services, when more companies desire web pages, the equilibrium:
In the market for web design services, if businesses expect consumers to make more on-line purchases, then the equilibrium:
If a state decides to reduce the cost of college tuition, by providing more Pell grants to students ceteris paribus, then the:
If a state adopts a free college tuition program, ceteris paribus, economists expect there to be a:
A price ceiling is:
A price ceiling does all of the following except:
Shortages are the same thing as excess:
A market shortage is:
When a price ceiling is set for a market, the quantity demanded will be:
Rent controls are an example of:
A price floor is:
Government price guarantees for certain crops are an example of:
Surpluses are the same thing as excess:
When a price floor is established above the equilibrium price, the market will demonstrate:
The doctrine of laissez-faire:
The invisible hand is most consistent with:
In a market economy, the _______ determines who gets the goods and services produced.
Given income and resource constraints, the market mechanism typically arrives at the _______ outcome.
One NEWSWIRE article in the text, "Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm. This is an example of:
One News Wire article in the text, “Hurricane Sandy to Raise Prices on Used Cars " describes the impact of thousands of cars being destroyed by the storm. What will happen to the equilibrium quantity of used cars if the supply decreases?
A market exists any place where goods are bought and sold.
The goal of consumers, businesses, and governments is to maximize the welfare of society.
Consumers strive to maximize their satisfaction given available resources.
Through specialization and exchange, people are able to consume more than if they made everything for themselves.
The factor market and the product market are essentially the same thing.
Land, labor, capital and entrepreneurship are bought and sold in the product market.
Producers do not participate in the factor market.
Producers supply goods and services to the product market.
Barter is the direct exchange of one good for another.
If you really want a new BMW then, from an economic standpoint, you demand it.
A decrease in price leads to a decrease in quantity demanded.
The demand schedule and demand curve remain unchanged only so long as the underlying determinants of demand remain constant.
The demand curve for most goods will shift to the left if consumer income increases.
The demand curve will shift to the right if the number of buyers increases, ceteris paribus.
A market-demand curve can be found by adding together the separate demands of the individual consumers at each price.
The supply curve of an individual producer is based on the expected demand in the market.
According to the law of supply, there is an inverse relationship between price and quantity supplied.
A decrease in price leads to a decrease in quantity supplied.
The supply curve will shift to the left if technology improves.
The supply curve will shift to the right if the cost of factor inputs decrease.
Market price is always the same as equilibrium price.
When a concert sells out very quickly, the market for tickets is definitely in equilibrium because the number of tickets sold equals the number of tickets demanded.
If demand does not change, an increase in the number of sellers will cause equilibrium price to fall.
Price ceilings are below the equilibrium price and cause surpluses.
A policy of laissez faire relies on the invisible hand to determine prices for goods and services.
In a market economy prices are determined by the interactions of buyers and sellers, this is referred to as the market mechanism.
Rent controls ensure affordable rent for all who are seeking a place to live.
Which of the following does not represent a market?
Consumers are on the _____ side of the product market, businesses are on the _____ side of the factor market and government is on the _____ side of the product market.
The demand curve shows what the consumer has purchased at all possible prices.
California has experienced severe droughts thus adversely affecting its agricultural production. How would this outcome be explained?
Which of the following are market participants?
Supply is a measure of the quantity of a product that
If the price of a product decreases, ceteris paribus, then the quantity demanded of the good will ______ and the quantity supplied will _______.
At the equilibrium market price, which of the following is true?
Which of these would cause both the supply and demand curves of a product to shift?
Which of the following would cause both the equilibrium price and the equilibrium quantity to decrease?
What is the goal of a business?
Which of the following is correct?
In economics, elasticity means ______.
As the marginal utility of a good diminishes, so does the
The following chart shows the utility (enjoyment) that Joyce receives from eating ice cream cones on a hot summer day.
The demand for lunch at a local restaurant is currently price elastic for college students but price inelastic for businesspeople. In order to increase total revenue, the restaurant should
The goal of an advertising campaign is to
A good whose demand is not very responsive to a change in price is called:
If the demand for a good is elastic, when price increases, total revenue will:
Which of the following are determinants of price elasticity?
The increase in federal taxes on cigarettes from $0.39 to $1.01 in 2009 had only a modest effect on quantity demanded, indicating:
When marginal utility is negative, total utility is:
A good with relatively elastic demand is more likely to be a _____, or a good with _____ substitutes.
The 2009 tax increase of 20 cents per pack of cigarettes in San Francisco will most likely generate only modest revenues because:
Gasoline and SUVs are _____; as gasoline prices have increased, SUV sales have _____.
When income changes, there is a _____ the _____ curve.
Recent prices increases for Starbucks coffee will cause an increase in revenue for the company if:
The goals of the principal participants in the economy are to maximize:
For consumers, most market activity can be explained by the goal of:
Which of the following is a goal of businesses?
For government, most market activity can be explained by the goal of:
Which of the following is a constraint that motivates economic interactions?
Economic interactions with others are necessary because:
A market:
A market exists for the sale and purchase of:
People benefit by participating in the market because:
Market participants include:
Which of the following is not a factor of production?
Any place where factors of production are bought and sold is a:
Consumers _______ factors of production in the _______ market.
Producers _______ factors of production in the _______ market.
A market in which finished goods and services are exchanged is a:
Which of the following participates in the product market?
In the U.S. economy, foreigners participate in:
The direct exchange of one good for another is known as:
Consumers:
Producers:
In order to demand a good, the buyer must:
Which of the following situations is sufficient to represent current demand for a car?
A demand schedule refers to the combinations of price and quantity that represent the:
Ceteris paribus, _______ can change without shifting the demand curve for jackets.
According to the law of demand, a demand curve:
The quantity of a good demanded in a given time period increases as the price falls, which is known as:
According to the law of demand:
According to the law of demand, a change in _______ causes a movement along the demand curve.
Ceteris paribus, the quantity demanded of a good will decrease in response to:
Ceteris paribus, according to the law of demand, if the price of a computer game increases from $25 to $30, the:
Which of the following will not cause a shift in the demand curve for a good?
Which of the following is not a determinant of demand?
Which of the following will not shift the demand curve for natural gas?
Ceteris paribus, which of the following will cause the demand for peanut butter to decrease?
Ceteris paribus, which of the following will cause the demand curve for basketballs to shift to the left?
Ceteris paribus, the demand curve for a good will shift to the right in response to:
Ceteris paribus, which of the following will cause the demand for pizza to increase in a college town?
Ceteris paribus means:
Economists make a distinction between changes in quantity demanded and changes in demand:
A change in demand means there has been a shift in the demand curve, and a change in the quantity demanded:
The market demand for a particular good indicates:
The market supply of a particular good:
Which of the following would not cause the market supply of cell phones to change?
Which of the following is a determinant of supply?
The quantity of a good that suppliers are willing and able to supply at a given price in a given time period depends on:
Which of the following provides the best example of the law of supply?
Ceteris paribus, according to the law of supply, if the price of product Z increases from $6 to $8, then the:
Ceteris paribus, according to the law of supply, if the price of lawn mowing decreases from $50 per lawn to $45 per lawn, then the:
A movement along the supply curve is the same as a:
Ceteris paribus, which of the following will cause a rightward shift of the supply curve for plasma TVs?
An increase in the supply of frozen yogurt will take place when:
Which of the following events would cause a rightward shift in the supply curve for automobiles?
Ceteris paribus, which of the following will cause the supply of milk shakes to increase?
Ceteris paribus, which of the following will cause the supply of paper to decrease?
Which of the following will cause a leftward shift of the supply curve for houses?
Which of the following will cause a leftward shift of the supply curve for electricity?
A market is said to be in equilibrium when:
In a market, the equilibrium price is determined by:
The equilibrium price and quantity are determined by the:
A market shortage occurs when:
When there is a shortage in a market, prices are likely to:
If a market shortage exists:
A market surplus occurs when:
When there is a surplus in a market, prices are likely to fall because:
If a market surplus exists:
If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:
If demand is constant, a leftward shift in the supply curve will result in:
The price of chocolate candy bars rises. This could be due to:
If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:
Which of the following would cause a decrease in the price of automobiles?
If supply is unchanged, a decrease in the demand for soft drinks will cause equilibrium price to:
If supply is constant, a decrease in the demand for potato chips will cause:
If supply is unchanged, a decrease in the demand for tacos will cause the equilibrium price to:
If supply is unchanged, a rightward shift in the demand curve for gourmet ice cream will result in:
In the market for web design services, when more companies desire web pages, the equilibrium:
In the market for web design services, if businesses expect consumers to make more on-line purchases, then the equilibrium:
If a state decides to reduce the cost of college tuition, by providing more Pell grants to students ceteris paribus, then the:
If a state adopts a free college tuition program, ceteris paribus, economists expect there to be a:
A price ceiling is:
A price ceiling does all of the following except:
Shortages are the same thing as excess:
A market shortage is:
When a price ceiling is set for a market, the quantity demanded will be:
Rent controls are an example of:
A price floor is:
Government price guarantees for certain crops are an example of:
Surpluses are the same thing as excess:
When a price floor is established above the equilibrium price, the market will adjust by way of:
The doctrine of laissez-faire:
The invisible hand is most consistent with:
In a market economy, the _______ determines who gets the goods and services produced.
Given income and resource constraints, the market mechanism typically arrives at the _______ outcome.
Refer to Figure 3.1. Consider the market for pecans. Many pecan trees are destroyed by webworms.
Refer to Figure 3.1. Consider the market for laptop computers. There is a decrease in the price of computer microchips.
Refer to Figure 3.1. Consider the market for desktop computers. Consumers decide they like laptop computers better than desktops.
Refer to Figure 3.1. Consider the market for new cars. People begin saving for retirement at a much higher rate.
Refer to Figure 3.1. Consider the market for DVD players. People prefer watching movies on DVDs at home instead of going to the movie theater.
Refer to Figure 3.1. Consider the market for new houses. The level of income increases for all consumers.
The equilibrium price and quantity in Figure 3.2 are, respectively:
In Figure 3.2, at a price of $10 there is a:
In Figure 3.2, at a price of $40, there is a:
In Figure 3.2, the highest price at which buyers are willing and able to purchase 5 units is:
The equilibrium price and quantity in Figure 3.3 are:
If the actual market price is held to $10 per unit in Figure 3.3, there will be a:
If the market price is set at $25 per unit in Figure 3.3, there will be a:
If the market price is set at $20 per unit in Figure 3.3:
If the government wants to use a price ceiling to change the market outcome in Figure 3.3, it should choose a price of:
Which panel of Figure 3.4 represents the changes in the market for chicken when farmers use hormones to increase the production of chicken, but consumers are concerned about eating the chicken?
Which panel of Figure 3.4 represents the changes in the market for beef when the price of corn (cattle feed) rises and the Surgeon General reports that red meat contributes to coronary disease?
Which panel of Figure 3.4 represents the changes in the market for parking spaces when the student population increases on a college campus and one parking lot has been destroyed to build a new building?
Which panel of Figure 3.4 represents the changes in the market for hip-hugger jeans when U.S. college students decide hip huggers look really good and a large quantity of cheap hip-hugger jeans are imported into the United States?
In Table 3.1, if the price is set at $6, the market:
In Table 3.1, if the price is $4, the market:
In Table 3.2, if the worldwide price of trucks is $30,000, the truck market:
In Table 3.2, if the worldwide price of trucks is $40,000, the truck market:
In Table 3.2, the equilibrium price in the worldwide truck market is:
One NEWSWIRE article in the text, "Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm. This is an example of:
One HEADLINE article in the text, "Hurricane Sandy to Raise Prices on Used Cars" describes the impact of thousands of cars being destroyed by the storm. What will happen to the equilibrium quantity of used cars if the supply decreases?
A market exists any place where goods are bought and sold.
The goal of consumers, businesses, and governments is to maximize the welfare of society.
Consumers strive to maximize their satisfaction given available resources.
Through specialization and exchange, people are able to consume more than if they made everything for themselves.
The factor market and the product market are essentially the same thing.
Land, labor, capital and entrepreneurship are bought and sold in the product market.
Producers do not participate in the factor market.
Producers supply goods and services to the product market.
Barter is the direct exchange of one good for another.
If you really want a new BMW then, from an economic standpoint, you demand it.
A decrease in price leads to a decrease in quantity demanded.
The demand schedule and demand curve remain unchanged only so long as the underlying determinants of demand remain constant.
The demand curve for most goods will shift to the left if consumer income increases.
The demand curve will shift to the right if the number of buyers increases, ceteris paribus.
A market-demand curve can be found by adding together the separate demands of the individual consumers at each price.
The supply curve of an individual producer is based on the expected demand in the market.
According to the law of supply, there is an inverse relationship between price and quantity supplied.
A decrease in price leads to a decrease in quantity supplied.
The supply curve will shift to the left if technology improves.
The supply curve will shift to the right if the cost of factor inputs decrease.
Market price is always the same as equilibrium price.
When a concert sells out very quickly, the market for tickets is definitely in equilibrium because the number of tickets sold equals the number of tickets demanded.
If demand does not change, an increase in the number of sellers will cause equilibrium price to fall.
Price ceilings are below the equilibrium price and cause surpluses.
A policy of laissez faire relies on the invisible hand to determine prices for goods and services.
In a market economy prices are determined by the interactions of buyers and sellers, this is referred to as the market mechanism.
The largest portion of the average U.S. consumer's dollar is spent on:
The second largest portion of the average U.S. consumer's dollar is spent on:
Which of the following ranks the top three components of U.S. consumption correctly from largest to smallest?
Which of the following is true about consumer spending over time?
Which of the following does NOT influence consumer demand?
Sociopsychiatric explanations of consumer behavior include:
The law of demand states that:
Which of the following is true about American spending habits?
Demand is defined as the:
If an individual demands a particular good, it means that he or she:
Which of the following is true about demand?
Which of the following is not a determinant of demand for a good?
Which of the following is a determinant of demand for a good?
Which of the following is not a determinant of demand?
The market demand curve is calculated by:
Which of the following causes the market demand curve for a good to shift?
Market demand is the:
In economic theory, utility refers to the:
Which of the following refers to the satisfaction a consumer receives from the consumption of a good?
The pleasure or satisfaction obtained from goods and services is known as:
In economic theory, total utility refers to:
The amount of utility obtained from the entire consumption of a good is known as:
Marginal utility refers to the:
The law of demand and the law of diminishing marginal utility are related since both:
Marginal utility is an important economic concept because it:
The difference between total utility and marginal utility is that:
According to the law of diminishing marginal utility:
When the additional satisfaction from a good declines as more of it is consumed, this illustrates the law of:
At some point during a meal each extra bite provides less and less additional satisfaction. This can be explained by:
Javier goes to an all-you-can-eat buffet at a Chinese restaurant and consumes three plates of food. Which of the following explains why the third plate of food does not provide as much satisfaction as the second plate?
The law of diminishing marginal utility helps to explain the:
Which of the following is the best reason why we typically pay a relatively low price for water?
Maximum total utility is achieved where:
Total utility is maximized where:
With a greater amount of consumption, total utility:
If the marginal utility for slices of pizza is decreasing but positive, then:
If the marginal utility of one more piece of candy is positive, then the:
If marginal utility is positive, then total utility must be:
If marginal utility is negative, then:
The assumption of ceteris paribus is important because it:
Ceteris paribus means:
According to the law of demand:
The law of demand states that quantity demanded increases in a given time period if:
The law of demand explains why people:
Ceteris paribus, a demand curve shows the:
The downward slope of the demand curve is related to the:
The demand curve is downward sloping because:
Price elasticity of demand shows how:
The response of quantity demanded to price changes is shown by:
Which of the following statements is NOT correct?
Price elasticity of demand indicates the consumer's response to changes in:
The price elasticity of demand is defined as the:
Suppose the price elasticity of demand for tacos is 0.80. If the price of tacos increases by 10 percent, then the quantity demanded of tacos should, ceteris paribus:
If the price elasticity of demand for a product is 2.3, this means that quantity demanded will increase by _______ for each _______ decrease in price, ceteris paribus.
If a firm finds that it can sell 20,000 units at a price of $5 per unit and 25,000 units at a price of $4 per unit then demand in this price range is:
Assume a price elasticity of demand of 0.50. If the tobacco lobby is successful in reducing a tax on the price of cigarettes by 10 percent, the quantity demanded will:
If the price elasticity of demand is 1.5, and the prices gone up by 20 percent, the quantity sold will, ceteris paribus:
If the price elasticity of demand is 2.5, then a 40 percent decrease in the price of the good will lead to a _______ percent increase in the quantity demanded.
If the price elasticity of demand is 1.8 then a 30 percent decrease in the price of the good will lead to a _______ percent increase in the quantity demanded.
Suppose a university raises its tuition by 8 percent and as a result the enrollment of students drops by 4 percent. The price elasticity of demand is closest to:
Suppose Suzuki increases the price of a particular motorcycle model by 12 percent and as a result the quantity demanded for that model decreases by 4 percent. The price elasticity of demand for that model is:
Suppose a cosmetics company increases the price of eyeliner by 10 percent and as a result the quantity demanded of eyeliner decreases by 2.5 percent. The price elasticity of demand for eyeliner is:
If demand is elastic, then:
Suppose the local government decides to reduce traffic congestion on a bridge by imposing a toll. The toll will be most effective if the price elasticity of demand for the bridge is:
Which of the following is most likely to be elastic with respect to demand?
The demand for _______ is relatively elastic.
If demand is inelastic, then:
If quantity demanded rises only slightly following a moderate price cut, then demand is:
When the percentage change in quantity demanded is numerically less than the percentage change in price, ceteris paribus, demand is:
Which of the following is most likely to be inelastic with respect to demand?
The demand for _______ is relatively inelastic.
If the percentage change in quantity demanded is exactly equal to the percentage change in price, then demand is:
For which of the following is the price elasticity of demand most likely to be unitary elastic?
Total revenue is:
If the price elasticity of demand is 1.0 and a firm raises its price by 15 percent, the total revenue will:
Ceteris paribus, when the price elasticity of demand is unitary elastic, a decrease in:
If demand is unitary elastic, then a price cut:
Ceteris paribus, a price increase will cause total revenue to stay the same for a producer only if the price elasticity demand for its product is:
A price cut will increase the total revenue a firm receives, ceteris paribus, only if the demand for its product is:
If the price elasticity of demand for Baja Fresh tacos is 2.5, then Baja Fresh can:
Ceteris paribus, total revenue definitely declines when price:
Ceteris paribus, a price increase will cause total revenue to decrease for a firm, if the demand for its product is:
Ceteris paribus, in which of the following instances will total revenue decline?
Ceteris paribus, a price decrease will cause total revenue to decrease for a firm, if the demand for its product is:
Ceteris paribus, when a firm increases the price of its product, total revenue will:
By which of the following means can the university reduce the size of the crowd at its' football game and simultaneously earn more revenue to finance a new stadium?
Which one of the following generalizations is NOT correct?
Which of the following causes demand to be more elastic with respect to price?
Which of the following does NOT influence the price elasticity of demand?
Which of the following causes the price elasticity of demand for a good to be more inelastic?
People find it difficult to get along without necessities, therefore demand for necessities:
Which of the following is relatively inelastic with respect to demand?
If the price of potato chips rises and the demand for pretzels rises, then potato chips and pretzels are:
If the price of battery-powered flashlights falls and the demand for flashlight batteries rises, then flashlights and batteries are:
When income increases, the demand for most products:
When income decreases, the demand for most products:
The objective of advertising, from an economic perspective, is to shift the demand curve to the:
When a firm advertises, it is attempting to:
In Table 4.1, the marginal utility of the third unit is:
In Table 4.1, the total utility when two units are consumed is:
In Table 4.1, the total utility when four units are consumed is:
In Table 4.1, diminishing marginal utility occurs:
In Table 4.2, what is the total revenue from automobile sales at a price of $24,000 per auto?
In Table 4.2, what is the total revenue from automobile sales at a price of $20,000 per auto?
In Table 4.2, as price decreases from $24,000 per car to $20,000 per car:
In recent years advertising expenditures in the United States have:
Advertising can enhance economic efficiency when it:
The demand for such items as salt, sugar and hand soap tend to be:
The demand for such items as vacation travel, new cars and HDTV tend to be:
One NEWS WIRE article states that an increase in cigarette prices of 10 percent reduced cigarette sales by about 4 percent. What is the effect of higher prices in the market for cigarettes?
One HEADLINE article reports that the United States spends more on advertising per person than most other countries. A successful advertising campaign should shift the:
On average, consumers spend the largest portion of their income on food.
Housing and transportation account for the largest portion of the average consumer dollar.
The goal of economic theory is to explain and predict choices.
Status and ego concerns are sociopsychiatric explanations for consumption behavior.
Demand is the desire to purchase a particular good even if you cannot pay for it.
Tastes and income are some of the determinants of demand.
Market demand is the sum of individual consumer demands.
Total utility is the additional satisfaction received from consuming one more unit.
At a point of diminishing marginal utility, marginal utility begins to decline as consumption increases.
The law of diminishing marginal utility does not apply to goods that a person really enjoys.
According to the law of diminishing marginal utility, with the consumption of each additional candy bar, for example, the total satisfaction decreases.
As long as marginal utility is positive, total utility must be increasing.
If marginal utility is rising, total utility must be falling.
The inverse relationship between quantity demanded and price for a good can be explained by the law of diminishing marginal utility.
The price elasticity of demand measures the response of consumers to a change in price.
If the price elasticity of demand is equal to 2.3, then a 1 percent increase in price will result in a 2.3 percent decrease in quantity demanded.
The demand is price-inelastic when the percentage change in quantity demanded is greater than the percentage change in price for a particular good.
The demand is price-elastic when the percentage change in quantity demanded is greater than the percentage change in price for a particular good.
Ceteris paribus, a price cut will most likely decrease total revenue if demand is inelastic.
Ceteris paribus, an increase in price will most likely decrease total revenue if the price elasticity of demand is 1.8.
Ceteris paribus, an increase in price will increase total revenue if the price elasticity of demand is 1.3.
Ceteris paribus, the price elasticity of demand for a good with many substitutes is likely to be inelastic.
Ceteris paribus, a successful advertising campaign causes the demand curve for a good to become steeper.
