question
A demand curve for a normal good
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Shows the inverse relationship between price and quantity demanded.
question
Assume that the marginal utility from good x is 10 units and that the price x is 5$ per unit.
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Consume more of good y.
question
Using the table above, what is the opppurtunity cost of moving alternative C to D?
answer
90 Loaves of bread.
question
For which of the following would be the absolute price of elasticity of demand be greatest?
answer
B) Pepsi Coca Cola
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How does a change in quantity supplied differ from a change in supply?
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A change in price affects quantity supplied, not supply.
question
A straight line production possibilities curve has
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Constant opportunity cost between the two goods
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A shortage creates a situation that forces prices to ________ while a surplus creates a situation that forces prices to _____
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increase, decrease
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Supposed the absolute price of elasticity of demand for newsletter subscriptions is 1.3 In order to increase the total revenue from subscriptions, the publishers should
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reduce the price of the newsletters
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Compared to the long-run absolute elasticity of demand, the short run absolute elasticity of demand is,
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smaller
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According to the table above, a surplus exists when,
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the price is greater than $3 per unit
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According to the above figure, a shortage will occur at a price at which,
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Quantity demanded exceeded quantity supplied.
question
Suppose that when the price of a soft drink rise 10% the quantity demanded of the soft drink falls 5%. Based on this information, what is the approximate absolute price elasticity of demand for soft drink?
answer
0.5
question
Which of the statements is FALSE?
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Increase in demand shifts the demand curve to the left, closer to the price axis
question
The quantitiy of raspberries sold at a local store increases from 100 pints to 1500 when the price is reduced from $4.00 to $1.00. What is the absolute price elasticity?
answer
1.46
question
The demand curve for petrol should be,
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More elastic in the long run than in the short run
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The price of a burger is $1, price of a movie is $6 and the consumer has $15. What's the optimum?
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3 burgers and 2 movies
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Price floors are designed to,
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establish a min. allowable price
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When supply and demand for a product increase simultaneously , we
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Cannot predict the market clearing price, but know that the equilibrium quantity will increase
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If bagels and croissants are substitute goods, which of the following is likely to occur if the price of bagels decreased?
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Demand curve for croissants moves to the left
question
If the price elasticity of demand for apples is greater than 1, an increase in apple prices will,
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Lower total revenue
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Bill Bone crusher... $2 million for a year or coaching $50,000 a year. His opportunity cost at graduation was, ______ and eight years later was ____.
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50,000; 2 Million
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Which of the following will most likely happen between technology is used in production?
answer
An outward shift of production possibilities curve
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If someone complains that she doesnt feel very well because she ate too much pizza, we would conclude that the marginal utility of the last piece of pizza eaten was,
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negative
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If a consumer is initially at an optimum, and then the price of Y falls, then
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MUx/Px < MUy/Py
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If the absolute price elasticity of demand for good Y is 0.75, when there is a 30 percent increase in price, we can conclude that quantity demanded,
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Has fallen by 22.5 percent.
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