Chapter 7
Consumer Choice and Elasticity
QUESTIONS 1 THROUGH 10 ARE A SUGGESTED CHAPTER QUIZ.
1.If Mr. metalworker thinks the last dollar spent on shirts yields slight satisfaction than the last dollar spent on cola, and Smith is a utility-maximizing consumer, he should
a. flow his dischargeing on cola.
b.decrease his kick the bucketing on cola and increase his spending on shirts.
c.increase his spending on shirts.
d.increase his spending on cola and decrease his spending on shirts.
2.A 10 percent increase in the price of lettuce reduces sugar consumption by about 5 percent. The increase causes households to
a.spend more on sugar.
b.spend less on sugar.
c.spend the same amount on sugar.
d.consume more goods standardized coffee and tea that are complements of sugar.
3.Which of the following would be the exceed example of consumer surplus?
a.Jane does not get cell-phone service because she feels that it is outlay less than the $30 a month fee.
b.Sam pays $8 for a haircut that is worth $10 to him.
c.Ralph buys a house for $104,000, the maximum amount that he would be willing to pay for it.
d. swear out purchases a book for $20 and uses a credit posting to pay for it.
4.
I like ice cream, but afterwards eating homemade ice cream last night, I want to have something else for dessert today. This statement most understandably reflects
a.the budget constraint.
b.consumer irrationality.
c.the second law of demand: Price snap increases with time.
d.the law of diminishing marginal utility.
5.If Sarahs income rises by 20 percent, and, as a result, she purchases 40 percent more occasion clothing, her income elasticity for designer clothing is
a.0.5.
b.1.0.
c.2.0.
d.Not enough nurture is given to answer this question.
6.Studies indicate that the demand for fresh tomatoes is much more...If you want to get a full essay, order it on our website: Orderessay
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