Question

PLEASE GIVE THE CORRECT ANSWERS

1)Which of the following is NOT a determinant of the price elasticity of demand?

A) the availability of potential substitutes
B) the share of the budget spent on the item
C) the time the consumer has to adjust to the price change

D) the cost to produce the product

2)Which of the following will cause a rightward shift of the demand curve?

A) a decrease in the cost of production
B) a decrease in the price of the good
C) an increase in the expected future price of the good

D) all of the above

3)If the price of hamburger meat increases by 20 percent and the quantity supplied by meat packing companies increases by 30 percent, what is the price elasticity of supply?
A) 1.65
B) 1.20                                                                                                                             

C) 0.67                                                                                                                                                 

D) 1.50

4) The price of a loaf of bread is $1.50, the price of a gallon of milk is $3.00, the price of a pound of butter is $2.40. The price of a loaf of bread relative to a gallon of milk is ______, while the price of a gallon of milk relative to a pound of butter is ______.

5) "As an individual consumes more units of a good, her total utility falls because of the law of diminishing marginal utility." Do you agree or disagree? Explain.

Answer 1