1 Assuming that Pepsi-Cola and Coca-Cola are substitutes, a decrease in the price of Pepsi-Cola and an increase in government regulations will cause what to happen to price and quantity in the Coca-Cola market?

Group of answer choices

quantity will fall and price will be indeterminate

quantity is indeterminate and price falls

quantity will rise and price will be indeterminate

quantity is indeterminate and price rises

What will happen to the equilibrium price and quantity of traditional camera film if traditional camerasprice increases?

Group of answer choices

price and quantity rises

price and quantity falls

price is indeterinate and quantity falls

price falls and quanity is indeterminate

3 Two Harvard economists were studying the demand for gasoline in Indonesia . They observed that a 10 percent increase in the price of gas reduced the quantity demanded of gas by 2.2 percent and that a 10 percent increase in the price of electricity increased the demand for gasoline by 1.6 percent. This indicates that (i) the demand for gasoline is price inelastic and (ii) gasoline and electricity are substitutes. Which of these two statements is correct?

Group of answer choices

I and II are correct

only II is correct

Netiher are correct

only I is correct

4 Suppose that the price of digital clocks falls from $15 to $12, its quantity demanded rises from 1,300 to 1,600 units. Using the midpoint formula, the price elasticity of demand for digital clocks is

Group of answer choices

-.95

.95

1.2

1.05

5 Which of the following would result in higher price elasticity of steak?

Group of answer choices

lower costs of labor in the production of steak

steak is more of a necessity than a luxury

more substitutes for steak

a shorter period of time has passed since the change in the price of steak

6 Consider the market for grapefruit. A decrease in the wages paid to grapefruit pickers and article in the newspaper stating that eating one grapefruit a day causes lower blood pressure will cause the:

Group of answer choices

quantity of grapefruit to increase and price to fall

quantity of grapefruit to be indeterminate and price to increase

quantity of grapefruit to increase and price to be indeterminate

quantity of grapefruit to decrease and price to be indeterminate

7 If the price elasticity of demand of Hot Wheel cars equals 5.83 and the percent change in price is 6 percent, then the quantity demanded of windup toys will be ____.

Group of answer choices

12.3 percent

17.1 percent

27 percent

35 percent

8 Suppose a new law requires all piercing studios to pass tougher licensing tests and to begin using more costly sterilization methods. Other things constant, this law would cause:

Group of answer choices

a decrease in the supply of piercings and a lower price for piercings.

an increase in the supply of piercings and a higher price for piercings.

an increase in the supply of piercings and a lower price for piercings.

a decrease in the supply of piercings and a higher price for piercings.

9 If the price of tuna sandwiches increases at Subway, what will happen to potato chips, a complementary good?

Group of answer choices

Demand will decrease.

Demand will increase.

Quantity demanded will increase.

Quantity demanded will decrease.

10 A change in price will lead to a change in __________ and to a change in __________, while a change in business taxes will lead to a change in __________ and a change in preferences will lead to a change in __________.

Group of answer choices

quantity demanded; supply; quantity supplied; demand

demand; quantity supplied; supply; quantity demanded

quantity supplied; quantity demanded; demand; supply

quantity demanded; quantity supplied; supply; demand

11 Which of the following would decrease the price of Ball Park hot dogs?

Group of answer choices

demand for Ball Park hot dogs falls and supply of Ball Parks falls by more than demand falls

A technological advance that lowers the cost of producing Ball Park hot dogs and people decide that hot dogs are disgusting no matter the brand.

A decrease in the price of hamburger meat, a substitute for Ball Park hot dogs and the wages for Ball Park employees rises.

An increase in the price of Ball Park hot dog buns, a complement to Ball Park hot dogs and government regulations on hot dog manufacturing gets stricter.

12 Coca Cola just conducted a $5.3 million ad campaign. In order to gage the effectiveness of the campaign, Coca-Cola's economists calculated the cross price elasticity of demand between Coke and Pepsi. Which of the following combinations would indicate that the campaign was successful:

Group of answer choices

From 0.9 to 0.3.

From 0.9 to 1.1.

From -0.5 to - 0.2.

From -0.7 to - 2.0

13 What is the effect in the market for Chobani yogurt of a simultaneous increase in income and price of milk rises? If demand shifts by a greater amount than supply shifts, then what happens to equilibrium price and quantity of Choban?

Group of answer choices

quantity is indeterminate and price falls

price rises and quantity falls

price falls and quantity falls

price is indeterminate and quantity falls

14 Suppose at a price of $6 and at a price of $10, Jon Snow purchases 30 units of Coca-Cola. Given this information, we know that

Group of answer choices

Jon's demand for Coca-Cola is perfectly elastic between the prices of $6 and $10.

Jon's entire demand curve for Coca-Cola is inelastic.

Jon's entire demand curve for Coca-Cola is unit elastic.

Jon's demand for Coca-Cola is perfectly inelastic between the prices of $6 and $10.

15 Sheldon is currently consuming 3 Cokes and 4 slices of pizza per week such that the marginal utility of the third Coke is 10 utils and that of the fourth slice of pizza is also 10 utils. If Coke costs 50 cents and Pizza costs $1.5, then

Group of answer choices

Sheldon has a higher Mu/P for Coke

Sheldon has a higher Mu/P for Pizza

Sheldon is currently at consumer equilibrium and should keep his purchases the same.

There is not enough information to answer the question.

16 Exhibit A

Units of plums: total Utility of Plums (utils)

1 22

2 34

3 44

4 52

5 57

The marginal utility of the third plum is

Group of answer choices

3

10

8

17

17 If you were an official in the Department of Agriculture and wanted to raise the U.S. price of wheat, which of the following actions would you take?

Group of answer choices

Subsidize the production of wheat.

Take wheat from government storage and sell it.

Encourage farmers to increase the use of fertilizer in their fields.

Lower the price of corn (price of other good).

18 Each year around Mother's Day, we would expect:

Group of answer choices

the price of roses to increase.

the demand for roses to increase.

all of these.

the quantity of roses sold to increase.

19 The price of Tostitos tortilla chips rose by 22 percentdue to an increase in the price of corn and the Von's store manager noticed that the quantity of tortilla chips sold fell by 8 percents. This tells us that the demand for Tostitos tortilla chips is

Group of answer choices

There is not enough data to answer the question

elastic

unit elastic

inelastic

20 If Leonard bought 20 comics last year when his income was $90,000 and he buys 24 comics this year when his income is $99,000, then his income elasticity of demand is ______________ which means that comics are a(n) ______________ good for Leonard.

Group of answer choices

-.5; inferior good

+1.63; normal good

-1.63 inferior good

+.5; normal good

21 The price elasticity of demand for steak is 7. This means that

Group of answer choices

none of the answers are correct

the percentage change in quantity demanded is 7 times the percent change in price

if price was raised 10 percent, quantity demanded would fall by 7 percent

if quantity demanded fell by 1 percent, price would fall by 70 percent

22 Suppose you just finished your third plateful of hamburgers and potato chips at the Fourth of July picnic and it yielded zero units of additional satisfaction. Should you go back for more?

Group of answer choices

If the fourth plate yields zero units, than to consume a fourth cannot give you any less than zero.

It will not make a difference because your total utility is at its highest point.

You should not because you could get negative utility from the fourth plate.

If you received zero satisfaction from the third plate, then the law of diminishing marginal utility is not working in this situation.

23 Suppose the marginal utility (MU) of a decorative candle is 80 utils and each costs $10 while the MU of a flashlight is 25 utils and each costs $5. If you consume one candle and one flashlight per week, are you attaining consumer equilibrium?

Group of answer choices

You are not in equilibrium because your MU/P is 8 for flashlights and 5 for candles

You are in consumer equilbrium, so there is no need to change.

You need to buy more candles to be in equilibrium, but keep your flashlight purchases the same.

You are not in equilibrium because your MU/P is 8 for candles and 5 for flashlights

24 When the price of an Amazon firestick rises from $50 to $55, quantity demanded falls from 8,200 to 7,500/. The price elasticity of demand is ___________ , making the demand for this good in the ___________ in the price range between $50 and $55.

Group of answer choices

1.94; elastic

0.84; elastic

1.06; inelastic

0.94; inelastic

25 Exhibit 2-21

Unit of Plums Total Utility of Plums (utils)

1 22

2 34

3 44

4 52

5 57

In this example, marginal utility

Group of answer choices

constantly increases.

diminishes then increases.

constantly diminishes.

increases then diminishes.

26 Exhibit 21-3

Apples Oranges

Units Total Utility Units Total Utility

1 15 1 22

2 28 2 41

3 39 3 58

4 48 4 73

5 55 5 85

Linda spends $5 a week on apples and oranges. If the price of both goods is $1 per unit, how many apples and oranges, respectively, does she purchase per week if she wants to maximize her utility?

Group of answer choices

1 and 4

0 and 5

3 and 2

2 and 3

27 Exhibit 21-3

Apples Oranges

Units Total Utility Units Total Utility

1 15 1 22

2 28 2 41

3 39 3 58

4 48 4 73

5 55 5 85

Linda spends $5 a week on apples and oranges. If the price of both goods is $1 per unit, what is Linda's total utility from consuming the optimal bundle of goods?

Group of answer choices

209

88

85

86

28 Which of the following statements is true?

Group of answer choices

Total utility will rise if marginal utility is negative.

If marginal utility is constant, then total utility for two units of a good is equal to the marginal utility of the second unit of the good.

The marginal and total utility of a good are the same for the first unit of the good.

An extra dollar earned by a millionaire necessarily brings him or her less utility than an extra dollar earned by a poor person.

29 The MU/P ratio for good X is the same as for good Y: 12 utils per dollar. If the price of good X rises to $2 from $1, a consumer who seeks (consumer) equilibrium will buy more of good __________ until the marginal utility of good __________ falls to __________ utils.

Group of answer choices

X; X; 24

Y; Y; there is not enough information to answer this part of the question.

X; X; there is not enough information to answer this part of the question.

Y; X; 12

30 Exhibit 21-5

Unit of Goods Consumed Total Utility (utils) Marginal Utility (utils)

1 20 20

2 30 (A)

3 (B) 8

4 (C) 6

5 (D) 3

What value goes in blank (D)?

Group of answer choices

15

47

60

35

**for the answer choices you can just use a,b,c,d to make it easy. 1st choice=a 2nd=b 3rd=c 4th=d**