Q: The marginal utility is represented by the: Price P a b S D Quantity
A: Utility is the satisfaction gained by the consumer by consumption of a good. Marginal utility is the…
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A: Answer: Correct option: A (increase D, increase P, increase Q) Explanation: The determinant here is…
Q: Explain the relationship between the law of diminishing marginal utility and the law of demand.
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Q: Suppose we have a market with 200 individuals with preferences over two goods, x and y. 1. Consider…
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Q: True or false? If the demand function is x1 = −p1, then the inverse demand function is x = −1/p1.
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Q: For a particular good, a 2% increase in P causes a 12% decrease in Q demanded. Which of these…
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Q: If income increases or the price of a complement falls,A) the supply curve of a normal good shifts…
A: If income increases or the price of a complement falls,A) the supply curve of a normal good shifts…
Q: If electric cars and solar panels are complementary goods, an increase in the price of solar panels…
A: Goods which are consumed together are complementary goods.
Q: Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B…
A: Substitute goods are those goods that can be consumed by an individual in place of each other by the…
Q: The substitution effect implies that as the price of a substitute good, the demand for the original…
A: Substitute goods are those goods that are consumed in place of each other. For example, Pepsi and…
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Q: Suppose consumers A and B have the following demand functions for x: For each consumer, is x is…
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Q: In case of complementary goods, a rise in price of Good X causes a rise in demand for Good Y. A True…
A: Ans in step 2
Q: Suppose that you discover that, ceteris paribus, when the price of tomatoes increases, the demand…
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Q: The cross-price elasticity between the good sold in this market (call it X) and another good (Y) is…
A: Cross price elaticity shows relationship between price and demand of the two goods. Substitute…
Q: In the following question you are asked to determine, other things equal, the effects of a given…
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Q: If the utility function for a consumer is defined by U=6X^0.6Y^0.7 . Given that the consumer's…
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Q: computers and software are complements, then A) other things being equal, a fall in the price of…
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Q: Which of the following must be true if good X is a normal good and income increases? Group of…
A: A normal good is a good whose demand increases with the increase in the consumer's income keeping…
Q: Suppose the change in the price of good A from $20 to $70 causes the individual's demand for good B…
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Complementary goods are those goods that are demanded jointly to fulfil single wants. This means when two goods are demanded together to fulfil single wants then those goods are considered as compliment goods.
Example:
- car and petrol
- cereal and milk
- pen and ink
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- QUESTION 3 If your salary increases by 30% and in response you increase your clothing purchases by 20%, income elasticity equals O A. 0.67; AN INFERIOR GOOD OB. 1.5; A LUXURY GOOD O C. 0.67; A NORMAL GOOD O D. 1.5; AN INFERIOR GOOD O E. 1.5; A NORMAL GOOD 4 and clothing isExplanation it correctly and detailsSuppose potatoes are a Giffen good. Then if the price of potatoes decreases, the quantity of potatoes will decrease O remain the same O ambiguous increase
- Which of the following is not an assumption of utility analysis. O A. Knowledge of prices O B. Consumer rationality O C. Objectivity in determining utility O D. Limited income. QUESTION 10 The marginal utility of a good refers to the O A. Total of utility of the good prior to consumption of the last unit. O B. The extra utility associated with consuming another unit of the good. OC. The consumer surplus from purchasing another unit of the good O D. The utility associated with consuming an alternate good When total utility is positive, we know that marginal utility is O A. Positive O B. Increasing OC. Both A and B. O D. None of the aboveOther things remaining the same, the law of demand implies that: Select one: O a. as the price of a product increases, the quantity demanded of the same product decreases O b. as the price of a product increases, the quantity demanded of a substitute product decreases c. as the price of a product increases, the demand of the same product decreases demanded of a complementary product decreases O d. as the price of a product increases, the quantity demanded of a complementary product decreases By definition: a substitute is a good that: Select one: O a. has same likeness as another good O b. O c. of lower quality than another good O d. of higher quality than another good that is not used in place of another goodThe above figures show the market for gasoline. Which figure(s) shows the effect of an increased preference for cars that are smaller and more fuel efficient? DI 这些 D2 D2 D₁ Quantity (gallons of gas) Quantity (gallons of gas) Figure A Figure B Price (dollars per gallon) S2 她 Quantity (gallons of gas) Figure D Quantity (gallons of gas) Figure C O Figure A O Figure B O Figure C O Figure D Price (dollars per gallon) S2
- If goods A and B are substitutes, an increase in the price of A will result in Select one: a. no difference in the quantity sold of either good O b. None of the answers are correct O c. increases the demand for O d. reduces the demand for BIf price of a good increases from $ 120 to $130 then quantity demanded will decrease from 1700 to 1500 using the midpolint formula we can conclude that OA change in quantity demanded is 12.5 O8 change in quantity demanded is a o change in quantity demanded is 13.3 0O None of the aboveA consumer with a fixed income will maximize utility when Och good is purchased in amounts such that the: O a. marginal utility of each good is maximized. O b. marginal ut ility per dollar spent is maximized for each good. marginal utility per dollar spent is the same for all goods. O d. total utility is the same for each good.
- Assume that Robyn wants to buy socks and once she finds out that the price per pair is $5. she decides to buy 4 pairs of socks. Which of the following is true? O a) The marginal benefit (or marginal utility) of the 5th pair is higher than the marginal cost of the Sth pair O b) The marginal benefit (or marginal utility) of the 4th pair must be equal to $20 O O The marginal benefit (or marginal utility) of the Sth pair must be lower than $5 O d) The marginal benefit (or marginal utility) of the first pair must be lower than 55The figure to the right represents the demand for ice cream cones. Which of the following statements is true? O A. Points a and b may not necessarily be the utility - maximizing quantities of ice cream cones at two different prices because we have no information on the consumer's budget or the price of other goods. B. Points a and b are the utility - maximizing quantities of ice cream cones at two different prices of ice cream. O C. Points a and b are derived independently of the utility - maximizing model. O D. Point a could be a utility - maximizing choice if the price is $3 but point b may not be because we have no information on the marginal utility per dollar when price changes. Price $3 1 3 4 Demand QuantitySubmit All Question 26 of 60 Suppose the price of mobile apps increases. As a result, Khalil decreases the number of mobile apps he purchases. This will lead to O higher marginal utility from the last mobile app purchased. O lower marginal utility. O no change in total utility for each mobile app purchased. O an increase in total utility for each mobile app purchased. Activate Windows Go to Setti To activa Show all 7:22 PM 12/9/2021 APTOP LOGIN USERNAME Student t PASSWORD: Broward