ECON 110 Read & Interact Schiller & Gephardt Chapter 4 solutions complete answers

ECON 110 Read & Interact Schiller & Gephardt Chapter 4 solutions complete answers 

 

When an economy falls into recession and people are losing jobs, demand for most products, especially big-ticket items,   (increases/decreases).

 

How will the price elasticity of a product that has few substitutes compare with one that has many substitutes?

 

A brand-name product has _____ substitutes than a product in general and is thus more ______.

 

If two goods are substitutes and the price of one good increases, then the demand for the other good will _____.

 

The price elasticity of demand tends to be low for _____ priced goods relative to income.

 

Demand for Nike shoes is more ______ than overall demand for shoes.

 

The more a good or service is considered to be a "luxury" rather than a "necessity," the more ______ the price elasticity of demand.

 

What is the term that indicates the total amount the seller receives from the sale of a product in a particular time period?

 

All of the following goods or services would most likely exhibit relatively price elastic demand, except:

 

Because price and quantity demanded are inversely related, the price elasticity of demand coefficient will technically be a   (positive/negative) number.

 

The price   of demand measures the responsiveness of consumers' quantity demanded to a price change.

 

All of the following goods or services would most likely exhibit relatively price inelastic demand, except:

 

The downward-sloping demand curve illustrates the declining nature of marginal utility because people are willing to buy additional quantities if the price

 

When total utility is increasing, we can conclude that marginal utility is:

 

The idea that we strive for ever-higher levels of consumption to receive recognition and stand out from the crowd is the   perspective of demand.

 

Because there is variation in the amount of utility that the consumption of goods or services provides, economists therefore recognize that utility is

 

The idea that we strive for ever-higher levels of consumption to receive recognition and stand out from the crowd is the _______ perspective of demand.

 

On average, if a person spends $50,000 per year, ________ is spent on transportation.

 

In the last 10 years, our annual consumption of _______ has declined.

 

The idea that we strive for ever-higher levels of consumption to satisfy basic drives for security, sex, and ego gratifications is the       perspective of demand.

 

The idea that we strive for ever higher levels of consumption to receive recognition and stand out from the crowd is the _______ perspective of demand.

 

Expanding on the sociopsychiatric explanation for demand, economists include:

 

On average, if a person spends $50,000 per year, ________ is spent on housing.

 

In the last 10 years, our annual consumption of _______ has increased.

 

The market demand for a specific product is determined by

 

The idea that we strive for ever higher levels of consumption to satisfy basic drives for security, sex, and ego gratifications is the _______ perspective of demand.

 

The utility of a specific product or service may vary widely from person to person, therefore it is:

 

      is the satisfaction or pleasure one gets from consuming a good or service.

 

Combining prices and income with basic desires and preferences is the _____ explanation for demand.

 

Marginal utility:

 

On average, if a person spends $100,000 per year, ________ is spent on housing.

 

The law that says, when the additional consumption of a good yields smaller and smaller amounts of extra utility, is:

 

The determinants of demand include:

 

According to the law of diminishing marginal utility, what happens to additional satisfaction or utility as a consumer acquires additional units of a given product?

 

Because there is variation in the amount of utility the consumption of goods or services provides, economists therefore recognize that utility is

 

When marginal utility is negative then total utility is:

 

The utility of a good is the       one gets from consuming a good or service.

 

Eventually additional quantities of a good yield _______ increments of satisfaction.

 

      utility is the extra satisfaction or utility a consumer realizes from consuming an additional unit of a particular product.

 

A consumer's choices are directly influenced by all of the following except:

 

If Janae notices that each apple she eats through the day yields a smaller amount of additional satisfaction, she is noticing the law of:

 

Which one of the following best clarifies the ceteris paribus assumption?

 

The law of diminishing       utility states that added satisfaction declines as additional units of a given product are consumed.

 

Which of the following define ceteris paribus?

 

So long as marginal utility is positive, total utility must be

 

True or false: If successive units of a good yield smaller and smaller amounts of marginal utility, then the consumer will buy additional units of the good only if its price rises.

 

As more of a product is consumed, total utility ______ at a diminishing rate.

 

Which of the following supports the idea that price must fall in order for quantity demanded to increase?

 

Consumer choice is influenced not only by the ______ utility that extra units of a good will yield, but also by how much ______ must be given up to obtain extra units of the good.

 

The inverse relationship between price and quantity demanded is called the

 

Consider the relationship between the price of gas and the quantity of gas consumed by drivers. If we are to consider the price of gas as the only factor affecting the quantity of gas consumed, while holding other factors such as drivers' incomes and tastes and preferences irrelevant, then we are applying

 

How is a consumer's responsiveness to price changes measured?

 

The assumption that nothing else changes is known as

 

The percentage change in quantity demanded divided by the percentage change in price describes

 

If successive units of a good yield smaller and smaller amounts of marginal utility, then

 

Why is the coefficient of price elasticity of demand technically a negative number?

 

Which of the following does the idea of diminishing marginal utility help to explain?

 

The relationship between price and quantity demanded is exemplified by _____.

 

All of the following goods or services would most likely exhibit relatively price inelastic demand, except?

 

The response of consumers to a change in price is measured by the price       of demand.

 

What type of demand is represented by a small change in price that leads to a large change in the quantity demanded?

 

Which of the following is the correct formula for calculating the price elasticity of demand?

 

Which of the following is true when the demand is unitary elastic?

 

Since price and quantity demanded are inversely related, the price elasticity of demand coefficient will technically be a       number.

 

If a 4% decline in the price of cut flowers results in an 8% increase in the quantity demanded, the price elasticity of demand for cut flowers is

 

According to the table, if the price of fresh fish increases by 20%, the quantity bought will

 

Which of these goods have relatively elastic demand?

 

When the price elasticity of demand for a product is elastic, a modest change in price causes _____ change in the quantity demanded.

 

How is total revenue calculated?

 

When demand is unitary elastic, the percentage change in quantity demanded is _____ the percentage change in price.

 

Along a typical demand curve, as price rises total revenue

 

If a 4% decrease in the price of chocolate causes a 4% increase in the quantity demanded of chocolate, the demand is

 

According to the table, if price of fresh fish decreases by 20%, the quantity bought will _____. 

 

Gasoline and coffee are two products that exhibit relatively       demand.

 

______ in price when a product is relatively price elastic will lead to a decrease in total revenue.

 

      revenue is calculated by multiplying the product price by the quantity sold.

 

If demand is relatively price      , the firm can increase its total revenue by raising the price of the good.

 

Along a typical demand curve, as price falls total revenue

 

Which of the following would be characteristics of goods with relatively elastic demand?

 

Which of the following would be considered a luxury and thus exhibit a high price elasticity of demand?

 

According to the table, if price of coffee increases by 20%, the quantity bought will _____.

 

If demand is relatively price      , a decrease in price will increase total revenue.

 

How will the price elasticity of demand for a good that is considered to be a luxury compare to one that is a necessity?

 

If demand is ______, a firm can increase total revenue by _____ prices.

 

All of the following goods or services would most likely exhibit relatively inelastic demand, except

 

How will the price elasticity of a product which has few substitutes compare with one that has many substitutes?

 

Which of the following would be considered a necessity and thus have a low price elasticity of demand?

 

The price elasticity of demand tends to be high for _____ priced goods relative to income.

 

Xbox and PlayStation are what type of goods?

 

The more a good or service is considered to be a "luxury" rather than a "necessity", the more ______ the price elasticity of demand.

 

With substitute goods, an increase in the price of one good will cause consumers to buy       of the other good.

 

Goods that "go together" are called       (complementary/substitute) goods.

 

The larger the number of substitute goods available, the       the price elasticity of demand. (Enter one word in the blank.)

 

If two goods are complements and the price of one good decreases, then the demand for the other good will

 

The higher the price of a good relative to a consumer's income, the       (greater/lower) is the price elasticity of demand.

 

We illustrate an income change with a       of the demand curve rather than a movement along the demand curve.

 

Goods that can be used instead of other goods are called       (complementary/substitute) goods.

 

Advertisers seek to shift the _______ curve by changing the _______ of consumers.

 

Evian water and Dasani water are substitute goods, if the price of Evian water increases, the demand for Dasani water

 

A successful advertising campaign is one that

 

Smartphones and apps are what type of goods?

 

If two goods are complements and the price of one good increases, then the demand for the other good will

 

When an economy falls into recession and people are losing jobs, demand for most products - especially big-ticket items      .

 

Advertising has what primary impact on a market for a specific product?

 

A successful advertising campaign is one that shifts

 

The price of demand measures the responsiveness of consumers quantity demanded to a price change.

 

Consumer choice is influenced by marginal utility and by their income.



Airline travel and new cars are two products that exhibit relatively price demand.

 

All of the following goods or services would most likely exhibit relatively price elastic demand, except?

 

Psychiatrists and sociologists offer explanations for our consumption behaviors based largely on 

 

It is generally observed that as more of a product is consumed, total utility ______, reaches a maximum, and then ______.

 

The total utility curve increases reaches a maximum and then declines. The marginal utility curve 

 

______ is the change in utility that results from the consumption of one more unit of a product.

 

If marginal utility is negative as an extra unit of a good is consumed, then total utility is:

 

If successive units of a good yield smaller and smaller amounts of marginal utility, then the consumer will buy additional units of a product only if its price ______.

 

In which of the following ways does the law of diminishing marginal utility support and exemplify consumer behavior?

 

Economists say that as we consume successive units of a good, we get smaller and smaller amounts of marginal or extra utility. This claim is known as

 

When Marco consumes successive slices of pizza, and each additional slice yields a smaller amount of additional satisfaction, he is experiencing the law of: 

 

The downward sloping demand curve illustrates the declining nature of marginal utility because people are willing to buy additional quantities if the price

 

Suppose the price of a handbag is reduced from $100 to $90. The quantity demanded increases from 50 units to 60 units. The price elasticity of demand for handbags in this price range 

 

The percentage change in quantity demanded is equal to the percentage change in price when demand is

 

Which of the following exemplifies a product that is very elastic?

 

When the price elasticity of demand is relatively price inelastic, a price increase will have what effect on total revenue?

 

Which of the following would best exemplify the most inelastic demand?

 

A price increase will increase total revenue if the price elasticity of demand is relatively price ________.

 

Gasoline and milk are two goods that exhibit relatively price ________ demand.

 

A brand name product has _____ substitutes than a product in general and thus more ______.

 

If the price elasticity of demand is unitary elastic, an increase or decrease in price will ______ total revenue.

 

If two goods are substitutes and the price of one good increases then the demand for the other good will _____.

 

A successful advertising campaign is one that makes