Samantha has a jewelry store. She is currently charging $22 for a new wrist watch. If the price elasticity of demand is 1.5, which of the following statements is true?

Question 1 options:

If Samantha raises her price, she will not lose very many new customers, and her total revenue will increase.

If Samantha raises her price, she will lose a lot of customers, and her total revenue will decrease.

If Samantha lowers her price, she will not get very many new customers, and her total revenue will decrease.

If Samantha changes her price (increase or decrease), the number of customers will change proportionally and total revenue will remain the same.

None of the above.

Question 2

When Coke is on sale at Giant's grocery store, sales of Pepsi drop (and vice versa).This is because the two goods have a cross elasticity of demand that is ____________.

Question 2 options:

less than one

greater than one

positive

negative

zero

Question 3

Adam reaches the satiation point if ______.

Question 3 options:

he consumes 5 hamburgers during the month

he consumes 10 hamburgers during the month

he consumes 20 hamburgers during the month

he consumes 35 hamburgers during the month

he consumes 55 hamburgers during the month

Question 4(Mandatory)

The price of hamburgers is $3 this month. His marginal utility for the 20th hamburger is ______.

Question 4 options:

1 util

2 utils

10 utils

15 utils

30 utils

Question 5

The price of hamburgers is $5 this month. The total revenue the hamburger seller receives from Adam this month is ______.

Question 5 options:

$5

$10

$25

$50

$100

Question 6

The price of hamburgers decreases from $3 to $2 during the next month. This represents a elasticity of demand of 1.36. This can be categorized as _______.

Question 6 options:

inelastic

unit elastic

elastic

perfect elasticity

perfect inelasticity

Question 7

A minimum wage ________.

Question 7 options:

is another name for a guaranteed contract

is simply a price floor in the labor market

causes a shortage of workers

covers every job in the United States

Question 8

Recently, the price of chips decreased from $5 a bag to $1 a bag at Food Lion.In response, the total quantity of chips demanded rose from 85 per week to 125 bags per week.Assuming things were equal, what is the price elasticity of demand?

Question 8 options:

Question 9

The consumer optimum for consuming two goods is achieved when:

Question 9 options:

the total utility from each good is equal.

the price of each good is equal.

the price multiplied by the marginal utility is equal for the two goods.

the marginal utility per last dollar spent is equal for the two goods.

the quantity purchased of each good is equal.

Question 10

Review Appendix F at the end of Chapter 20.

Question 10 options:

I1

I2

I3

The total utility is the same on all three curves

Question 11

Review Appendix F at the end of Chapter 20.

Which of the below statements istrue?

Question 11 options:

All points on a demand curve correspond to a consumer optimum between an indifference curve and a budget constraint curve.

The indifference curve can have an upward slope.

Each point along the same indifference curve corresponds to a different level of total utility.

All points along the same budget curve correspond to different income levels.

Question 12

Ceteris paribus, which of the following will result in demand for a good having a higher price elasticity of demand?

Question 12 options:

The time period under consideration is very short.

The good is a large part of your budget.

The good does not have many substitutes.

All of the above would all result in higher price elasticity of demand.

Question 13

In the next two hours, your most highly valued a choices are to go see a movie or read a book.If you choose to see the movie, then the enjoyment of reading the book is called the ____________.

Question 13 options:

marginal benefit

opportunity cost

economic consequence

equilibrium

Question 14

Scarcity is correctly described by which of the following statements?

I.Scarcity exists if there are more uses for resources than can be satisfied at one time.

II. Scarcity exists if decisions must be made about alternative uses for resources.

III.Scarcity would not exist in a society in which people wanted to help others instead of themselves.

Question 14 options:

I only

II only

III only

I and II only

I, II, and III

Question 15

Question 15 options:

consumer's incomes increased

P2 were set as a price ceiling

subsidies on the product increased

the price of a complementary product increased

costs of production were substantially lowered

Question 16

Darron finds that his total expenditure on compact disks stays the same after the price of compact disks declines, ceteris paribus.Which of the following is true for this price change?

Question 16 options:

A) Compact disks are inferior goods for Darron.

B) Darron's demand for compact disks increased in response to the price change.

C) The supply curve for compact disks decreased in response to the price decline.

D) Darron's demand for compact disks is unit price elastic.

Both B and C are true statements.

Question 17

Assume that there are two goods, good X and good Y.Good Y is measured on the vertical axis and the intercept of the budget line equals 10.The price of good Y equals $5 and the price of good X equals $10.After Sharay buys 5 units of good Y, how many units (or parts of a unit) of good X can Sharay buy?

Question 17 options:

0.5

2.0

2.5

5.0

impossible to determine from the information given

Question 18

The law of diminishing marginal utility helps to explain why _______.

Question 18 options:

the amusement park offers a 2-day pass at a cheaper price then buying 2-single day passes

atbuffets people will eventually eat less and less food

people will eventually get bored of doing something for a long time or repeatedly

all of the above

Question 19

Which of the following might influence a person's marginal utility and thus their choices?

Question 19 options:

Product information they read

Addictive tendencies

Advertising

All of the above

Question 20

Economists often use "marginal analysis" in making decisions. Marginal refers to _________.

Question 20 options:

a shift in a curve

an incremental change

a movement along a curve

the total amount

O change in Qd / change in P = (125-85)_ 1 (5-1) sum of q/2 sum of prices/2 ((125+85)/2) ((5+1)/2) O change in Qd / change in P * new P = (125-85) / (5-1) * 1 change in P / change in Qd = (5-1)_ (125-85)_ sum of q/2 sum of prices/2 ((125+85)/2) ((5+1)/2) O change in Qd / change in P * old P = (125-85) / (5-1) * 5 change in Qd / change in P * new Qd = (125-85) / (5-1) * 125For questions 3 through 6, assume the following: The following is Adam's monthly schedule of how many mini hamburgers he eats depending upon the price of the hamburger. Quantity Purchased / Consumed Price Total Utility 5 $5 10 utils 10 $4 20 utils 20 $3 30 utils 35 $2 35 utils 55 $1 35 utilsThe following is a set of indifference curves: Fast-Food Meals per Week B A 12 Movie Tickets per Week Which indifference curve has the highest total utility