Question

Expert, Please answer all the ten question. Thank you.

Question 30

When the point with the highest total utility has been found, we know that the the marginal utility per dollar must be _____.

Group of answer choices

the same for both goods

impossible to compare across different goods

different for one good compared to the other

zero for both goods

Question 29

The typical pattern revealed in a budget constraint model shows that as the quantity consumed rises,

Group of answer choices

total utility decreases

total utility rises, but marginal utility falls

marginal utility increases

total utility decreases, but marginal utility rises

Question 28

Relative to full-time workers, the supply curve of labor is generally more _____ for part-time workers.

Group of answer choices

infinite

elastic

inelastic

steeply-sloped

Question 26

A decrease in consumer preference for a product, other things being equal, will cause

Group of answer choices

market demand to shift to the left

quantity demanded becoming unlinked with price

market demand to shift to the right

a decrease in supply

Question 25

For lunch, Wendy eats only salads or oatmeal. Wendy receives increasing utility for each salad and oatmeal she consumes. Her weekly food budget is $48. Each salad costs $6 and each oatmeal costs $3. Which of the following could be Wendy's utility maximizing point?

Group of answer choices

4 salads, 4 oatmeals

2 salads, 8 oatmeals

4 salads, 8 oatmeals

1 salad, 1 oatmeal

Question 22

The ________________ arises when quantity demanded changes because consumers have effectively less spending power due to a price change.

Group of answer choices

downward sloping supply curve

preference effect

income effect

substitution effect

Question 18

Suppose chocolate chip cookies and oatmilk are generally considered to be complements for one another. In that case, their cross-price elasticities will be

Group of answer choices

totally unclear

positive

negative

zero

Question 16

Income elasticity of demand measures:

Group of answer choices

how much quantity demanded of a good responds to a change in income

how much quantity demanded of a good responds to a change in the price of an unrelated good

how much quantity demanded of a good responds to a change in its own price

how much quantity demanded of a good responds to a change in the price of a related good

Question 14

Demand is inelastic when:

Group of answer choices

the demand curve is horizontal

the percent change in quantity demanded is lower than the percent change in price

the percent change in quantity demanded is higher than the percent change in price

a good is a luxury good

Question 11

The price elasticity of demand measures

Group of answer choices

how much the quantity supplied of a good responds to a change in the price of that good

how expensive a good is

how much the quantity demanded of a good responds to a change in the price of that good

how much the quantity demanded of a good responds to a change in income

Answer 1

30).

When total utility becomes maximum, then marginal utility will be Zero. It is based in the law of diminishing marginal utility which says 'as more and more units of a good are consumed, MU i.e level of satisfaction derived from each successive unit goes on falling because desire for that commodity tend to fall. It is called point of satiety.

The correct option is (d).

Zero for both goods.

29). The correct option is (b).

total utility rises, but marginal utility falls.

We know the fact that when consumer consumes particular good his total utility will increase but his marginal utility goes on decreasing.

28). The correct option is (b).

Elastic.

The full time worrkers do not much change their hours worked as wages rise or fall, so their supply curve of labor is inelastic. However, part-time workers and younger workers tend to be more flexible in their hours, and more ready to increase hours worked when wages are high or cut back when wages fall. The labour supply curve of part timers is elastic.

26). The correct option is (a).

market demand to shift to the left.

As when the preference of a consumer for a product falls the demand for the product also falls and market demandd will shift to left.

25). The correct option is (c).

4 salads, 8 oatmeals

Because 4X6 = 24

and 8X3 =24

So total =48

His total budget is 48 and he cannot purchase more than his budget.

22). The correct option is (c).

Income effect.

The income effect is the effect on real income when price changes – it can be positive or negative.

18). The correct option is (c).

Complementary goods have a negative cross- price elasticity: as the price of one good increases, the demand for the second good decreases.

16). The correct option is (a).

how much quantity demanded of a good responds to a change in income.

Income elasticity of demand is an economic measure of how responsive the quantity demand for a good or service is to a change in income. The formula for calculating income elasticity of demand is the percent change in quantity demanded divided by the percent change in income.

14). The correct option is (b).

the percent change in quantity demanded is lower than the percent change in price.

Inelastic demand is when the buyer's demand does not change as much as the price changes. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.

11). The correct option is (c).

how much the quantity demanded of a good responds to a change in the price of that good.

Price elasticity of demand is an economic measure of the change in the quantity demanded or purchased of a product in relation to its price change. Expressed mathematically, it is: Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price.

Hope you got the answer.

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