According to consumer demand theory, quantity demanded is _________ to price cha
ID: 1120358 • Letter: A
Question
According to consumer demand theory, quantity demanded is _________ to price changes if marginal utility is __________.
most responsive, relatively active.
totally unresponsive, relatively constant.
least responsive, relatively constant.
infinitely responsive, infinitely active.
least responsive, relatively active.
2,
Suppose that eating 7 chocolate chip cookies at a single sitting provides me with the following total utility (in utils): 6, 11, 15, 18, 20, 21, 20 and that I have $6 of income. If the price per cookie declines from $2 to $1.50, then the marginal utility from the last cookie I consume is:
1 utils.
2 utils.
3 utils.
4 utils.
5 utils.
3.
If I'm thinking about buying a new laptop computer, my decision is most likely based on:
profit earned by Microsoft last year.
the winner of last year's World Series.
other goods I could purchase with the money.
the time of day I first connect to the internet.
the time of day my newspaper is delivered.
4.
If I am most satisfied eating 3 hot fudge sundaes, but I can only afford to buy two, then I am facing.
constrained utility maximization.
increasing opportunity cost.
consumption realization.
welfare marginalization.
diminishing marginal returns.
5.
The inverse relation between demand price and quantity demanded is the:
law of diminishing marginal returns.
law of diminishing marginal utility.
law of demand.
principle of least cost product.
principle of variable proportions.
6.
The general rule of consumer equilibrium for more than two goods is given by:
P for a good = MU for all other goods.
P for a good = P for all other goods.
MU for a good = P for all other goods.
MU for a good = MU for all other goods.
MU/P for a good = MU/P for all other goods.
8.
The willingness and ability to buy a range of quantities of a good at a range of prices is:
demand.
factor demand.
consumer demand theory.
diminishing marginal utility.
quantity demanded.
9.
Suppose that I get 400 utils from the last dollar spent on going to the movies, 400 utils for the last dollar spent on watching television at home, and 400 utils from the last dollar spent on all other goods. According to the rule of consumer equilibrium I should spend:
more on television and less on going to the movies.
less on television and more on going to the movies
more on television and more on going to the movies
less on television and less on going to the movies
the same on television and the same on going to the movies
10.
According to consumer demand theory and the rule of consumer equilibrium, an increase in the price of one good results in:
a decrease in the quantity demanded.
a decrease in marginal utility.
no change in quantity demanded.
no change in marginal utility.
a decrease in the marginal utility-price ratio for all other goods.
Explanation / Answer
1) A. Qty demand is more responsive on marginal utility because marginal utility curve is the individual demand curve.
2)2 utils because Qty=4units are consumed and Mu/price=MU of last dollar=3/1.5=2
3)C. Other goods has to be sacrificed.
4)A. Constrained utility maximisation.
5)C. Law of demand- an inverse relation between price and qty demanded
6)E. MUx/Px=MUy/Py
8)E.
9)E
10)A
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.