Economic explinations=
D) Prices and income.
Which ... determinant of demand?
B) Technological advances.
The amount of satisfactions obained... is:
D) Marginal utility.
Accoridng to the law of diminishing marginal utility:
C) Each successive unit of...
Total utility is maximized when:
C) Marginal utility is zero
The fact that a cup of gold
B) The marginal utility of a cup of gold is greater than the marginal utility of a cup of water.
Price elasticity of demand shows how:
B) Quantitiy demanded responds to price changes.
The price elasticity of demand is defined as the:
C) Percentage change in quantity demanded divided by the perentage change in price.
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 $12 to $16, the number of frisbees sold will:
A) Decrease by 14.3 percent.
When the percentage change in quantity demanded is
B) Demand is inelastic.
Which of the following does not influence the price elasticity of demand?
C) Costs of production.
Assuming that a good has a downward-sloping, linear demand curve. =
D) increases, then decreases.
If the price elasticity of demand is 1.0, and a firm raises its price by 10 percent, the total revenue will:
C) Not change
Assume the price elasticity of demand for MC Pretzel Co.
C) Increase because the percentage increase in price is greater.....
When demand is price inelastic, ceteris paribus, an increase in:
D) Price leads to greater total revenue.
Suppose the income elasticity of demand for used jet skis
D) Fall by 3.5 percent.
Ceteris paribus, if income increases and as a result,
B) Good X is a normal good and good Y is an inferior good.
When two or more goods are being purchased,
D) The ratioin of marginal utility to price is the same for all goods.