1) The concept based on the assumption that we get bargains on each unit we purc
ID: 2440117 • Letter: 1
Question
1) The concept based on the assumption that we get bargains on each unit we purchase until the last one is called
-marginal utility.
-total utility.
-the law of diminishing marginal utility.
-consumer surplus.
2)
-an increase in demand.
-an increase in quantity demanded.
-a decrease in demand.
-a decrease in quantity demanded.
3)
-BAE.
-None of these choices are true.
-CAD.
-CBED.
4) Demand and Utility Table for Milk Shakes
-$6.00.
-$3.50.
-$1.50.
-$10.50
5).
-$9.60.
-$9.20.
-$8.50.
-$9.00.
6)
-$250.
-$333.
-$300.
-$400.
7) When marginal utility is __________, total utility is __________.
-positive; increasing
-zero; maximized
-All of the choices are correct.
-negative; decreasing
8)
-Demand is less elastic at point Y than at point X.
-Demand is perfectly elastic.
-Demand is less elastic at point X than at point Y.
-Demand is perfectly inelastic.
9) Which of the following is likely a variable cost?
-All of these choices are variable costs.
-Fuel
-Hourly wages
-Raw materials
10) Demand is elastic
-when price decreases raise total revenue.
-when price increases lower total revenue.
-All of the choices are correct.
-when the percentage change in quantity demanded is greater than the percentage change in price.
11) The quantity demanded of Pepsi has decreased. The best explanation for this is that
-Pepsi consumers had an increase in income.
-Pepsi's advertising is not as effective as in the past.
-the price of Pepsi has increased.
-the price of Coca-Cola has increased. MICROECONOMIC
Explanation / Answer
Ans1) the correct option is consumer surplus. Consumer surplus is the area above the price and below the demand curve.
Ans2) The correct option is a decrease in demand. The demand curve shifts to the left meaning there is decrease in the demand.
Ans3) the correct option is BAE. consumer surplus wil be the area below the demand curve AD and above the price BE.
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