Please answer these questions

Question 1

The amount of satisfaction obtained from consumption of an additional unit of a good or service is

Group of answer choices

Never negative

Total utility

A function of supply

Marginal utility

Question 2

Marginal utility for a good is computed as

Group of answer choices

Total utility divided by quantity

Quantity divided by total utility

The change in quantity divided by total utility

The change in total utility divided by the change in quantity

Question 3

The additional pleasure or satisfaction from a good declines as more of it is consumed in a given period. This is the definition of the

Group of answer choices

Law of demand

Law of diminishing marginal utility

Law of diminishing total utility

Total revenue rule

Question 4

Jose goes to an all-you-can-eat buffet at a Chinese restaurant and consumes three plates of food. He does not go back for a fourth plate of food because

Group of answer choices

The price of the fourth plate is too high

He has reached the point of increasing marginal utility

The marginal utility of the fourth plate would be zero or even negative

His total utility would increase with the fourth plate of food

Question 5

Price elasticity of demand shows how

Group of answer choices

To compute the slope of the demand curve

Quantity demanded responds to price changes

Quantity demanded responds to changes in the price of other goods

Price responds to quantity changes

Question 6

The price elasticity of demand is defined as the

Group of answer choices

Percentage change in quantity demanded times the percentage change in price.

Unit change in price divided by the unit change in quantity demanded.

Percentage change in quantity demanded divided by the percentage change in price.

Unit change in quantity demanded times the unit change in price

Question 7

For downward-sloping linear demand curves, the price elasticity of demand

Group of answer choices

Is constant at each point on the curve.

Varies throughout the demand curve.

Tends to be elastic at relatively low prices.

Is equal to the slope of the demand curve

Question 8

Assume the price elasticity of demand for U.S. Frisbee Co. Frisbees is -0.5. If the company increases the price of each Frisbee from $6 to $8, the number of Frisbees sold will:

Group of answer choices

Decrease by 14.3 percent.

Decrease by 33.3 percent.

Increase by 20.0 percent.

Increase by 7.0 percent

Question 9

If the quantity demanded changes from 2 units to 4 units when the price is reduced from 45 cents to 40 cents per ounce. The price elasticity of demand is:

Group of answer choices

Impossible to calculate.

0.118

0.667

5.65

Question 10

If the quantity demanded changes from 2 units to 4 units when the price is reduced from 45 cents to 40 cents per ounce. The price elasticity of demand is

Group of answer choices

Impossible to calculate.

Elastic.

Inelastic.

Unit elastic

Question 11

For product X, the price elasticity of demand has an absolute value of 2. This means that quantity demanded will increase by

Group of answer choices

1 percent for each 2 percent decrease in price, ceteris paribus.

1 unit for each $2 decrease in price, ceteris paribus.

2 percent for each 1 percent decrease in price, ceteris paribus.

2 units for each $1 decrease in price, ceteris paribus

Question 12

A demand curve is described as perfectly inelastic if

Group of answer choices

The same quantity is purchased regardless of price.

The same price is charged regardless of quantity sold.

Only quantity demanded can change.

It is horizontal

Question 13

A demand curve that is completely inelastic is

Group of answer choices

Horizontal.

Vertical.

Upward sloping.

Downward sloping

Question 14

A demand curve is described as perfectly elastic if

Group of answer choices

The same quantity is purchased regardless of price.

The same price is charged regardless of quantity sold.

Only price can change.

It is vertical

Question 15

A demand curve that is completely elastic is

Group of answer choices

Horizontal.

Vertical.

Upward sloping.

Downward sloping

Question 16

Which of the following would be most likely to have a price-elasticity coefficient greater than 1

Group of answer choices

Cigarettes.

Coffee.

An addictive drug.

Restaurant meals

Question 17

Which of the following would be most likely to have a price-elasticity coefficient less than 1

Group of answer choices

An addictive drug.

Airline travel.

Restaurant meals.

New cars

Question 18

Ceteris paribus, as the number of substitutes for a good increase, the

Group of answer choices

Price elasticity of demand should become smaller.

Price elasticity of demand should become larger.

Cross-price elasticity of demand should become negative.

Income elasticity of demand should become negative

Question 19

The local baseball team owner hires you to help maximize the team's profits. You are told that costs are constant because enough help is always hired in case of a full stadium, so assume your task is to maximize revenues from ticket sales. Your advice to the owner should be

Group of answer choices

Set the ticket price in the inelastic region of the demand curve in order to increase revenues.

Raise the price as high as possible until the number of tickets sold begins to fall.

Set the price as low as possible to make sure the stadium is always full.

Set the price of tickets at the unitary elasticity price

Question 20

Assume a good has a downward-sloping, linear demand curve. As the price of this good increases, total revenue

Group of answer choices

Increases indefinitely.

Decreases indefinitely because the quantity sold will decrease.

Remains constant.

Increases then decreases

Question 21

Suppose AAA Airlines is suffering from low revenues and profits. If the company wants to increase ticket revenue and the price elasticity of demand is ?0.75, the company should

Group of answer choices

Increase the price of tickets.

Decrease the price of tickets.

Keep the price unchanged because if the price is either increased or decreased total revenues will fall.

Advertise. The only option the company has to raise total revenues is to advertise

Question 22

Maximum total revenue occurs when

Group of answer choices

Total revenue is ?1.0.

The absolute value of the price elasticity of demand is 1.0.

Price multiplied by quantity is 1.0.

All of the above

Question 23

Which of the following would best measure the effects of a recession

Group of answer choices

Income elasticity of demand.

Price elasticity of demand.

Cross-price elasticity of demand.

Utility-maximizing rule

Question 24

Assume that Heather always maximizes her total utility given her budget constraint. Every morning for breakfast Heather has two eggs and three sausages. If the marginal utility of the last egg is 20 utils and the price of eggs is $1 each, what can we say about the marginal utility of the last sausage if the price of each sausage is $2

Group of answer choices

It must be equal to 40 utils.

It must be equal to 20 utils.

It must be equal to 10 utils.

Indeterminate

Question 25

One of the objectives of advertising, from an economic perspective, is to shift the

Group of answer choices

Supply curve to the left.

Supply curve to the right.

Demand curve to the left.

Demand curve to the right