• ECON 1. Total
104 Revenue =
Bank Questions per Unit Quantity
10/4/2016 of Units sold
2. In a competitive market equilibrium
A) total consomer surplus equals total I producer surplus B) Marginal benefit and marginal cost are
Maximized C) Consumers and producers benefit equally D) The marginal benefit equals the marginal
cost of the last unit sold
3. When demand is elastic, a fall in price
causes total revenue to rise because
A when price falls, quantity sold increases
so total revenue automatically rises B) the increase in quantity sold is large If you want to learn more check out What is the posterior area between the hipbones called?
enough to offset the lower price C) the percentage increase in quantity
demanded is less than the percentage - fall in price
D) the demand curve shifts
What is the vale of consumer surplus at a price of $18 ?
B)#120 () $180 D) $240
40 Don't forget about the age old question of What were the highlights of seneca falls convention?
CS = 1 / 2 (21-18) × 40 = $60
What is the value of producer surplus at a price of $18?
A) $240 B) $300 () $340 D) $720
PS=(18-13) +40 + If you want to learn more check out Which cell parts do plant cells have that animal cells don’t possess?
6. Consider a demand curve that has a
constant elasticity value of O. What happens to quantity demanded and total revenue when price increases?
A) The quantity demanded and total
revenue remain the same B) The quantity demanded does not If you want to learn more check out What body is responsible for electing the president?
Change but total revenue increases c) The quantity demanded and total
revenue fall to zero D) The quantity demanded does not
change but total revenue decreases
7. If the price elasticity of demand for
canned soup is estimated at -1.62. What happens to sales revenue it the price of canned soup rises? We also discuss several other topics like What line best summarizes a bivariate distribution by just looking at its scatterplot?
A) it falls by 162 percent
B) it rises by 1.67 percent to C) it falls
D) it rises
ULTIL TV DLL
10/4/2016 8. Economists assume that the goal of consumers
A) do as little work as possible to survive B) make themselves as well off as possible c) Spend all their income D) Consome as much as possible Don't forget about the age old question of What are some of the nordic countries?
9.11f a consumer receives 20 units of utility
from consuming two candy bars, and 251 units of utility from consuming three candy bars, the marginal utility of the second candy bar is
A) 25 utility units B) 20 utility units
c) 5 utility units on + D) Unknown as more information is needed - to determine the answer.
increases when you your marginal utility
If your total satisfaction
consume another unit Imust be
A) increasing B) decreasing
C) negative → D) positive
Quantity of 1. Pita Wraps
Quantity of Bubble Tea
102 132 144 144 138 128
Keegan has $30 to spend on Pita Wraps and Bubble Tea. The price of a Pita Wrap is $6 and the price of a glass of Bubble
Tea is $3.
What is Keegan's
A) 3 pita wraps + B) 3 pita wraps
C4 pita wraps D) 5 pita wraps
optimal consumption bundle? and 3 bubble teas and 4 bubble teas and 2 bubble teas and O bubble teas
Pita wrap T. Utility M. Utility M. Cost Quantity T. Utility M. Utility in cost
60 - - #6 I 40 - - 102 42 $12 2 70 30 10 $6 132 30 5 $18 I 3 91 21 7 $90 144 12 02 $24 14 1066 15 5 12 | 144 0 0 $30
6 2 $15. 138 -6 -1 $36
3 1 18 128 -10 -1.67 $42
10/4/2016 When the price of hoagies increases from $5.00 to $5.75
quantity demanded decreases from Q. to Qo. This change
in quantity demanded - Qo Q. Quantity is due to
A) the price and output effects → B) the income and substitution effects
C) the fact that marginal willingness
to pay falls D) the law of diminishing marginal utility
Which of the following
statements is true?
A) Quantities Qo and
Q, are the utility maximizing quantities
of hoagies at two Qo Q Quantity
different prices of
hoagies. B) Quantities Oo and Q, may not necessarily
be the utility-maximizing quantities of hoagies at two different prices because we have no information on the consumers budget or the price of other goods. C) Quantities Qo could be a utility-maximizing choice if the price is $5.75, but quantity
Qu may not be because we have no information on the marginal utility per dollar when price changes.
SUMMON TUE WED THU 28 29 30 31 1
10/4/2016 14. In order to derive an individuals demand
curve for salmon, we would observe what happens to the utility - maximizing bundle when we change
A) income and hold everything else constant B tastes and preferences and hold everything
else constant c) the price of the product and hold
everything else constant. D) the price of a close substitute and hold
everything else constant
15. Price elasticity of demand measures
Al how responsive suppliers are to price
changes B) how responsive sales are to changes in
the price of a related good Chow responsive quantity demanded is to
a change in price D) how responsive sales are to a change
in buyers' income
16. If the percentage increase in price is 15
Ipercent and the value of the price elasticity lot demand is -3, then quantity demanded
- A) will increase by 45 percent
B) will increase by 5 percent + C) will decrease by 45 percent
D) will decrease by 5 percent
10/4/2016 17. Perfectly inelastic demand is represented by a
demand curve which is
and relatively Linelastic demand is represented by a demand
curve which is
A) downward sloping; vertical B) horizontal; downward sloping
C) vertical downward sloping D) upward sloping; horizontal
If 50 units are sold at a price of $20 and 80 units are sold at a price of $15, what is
the absolute value of the price elasticity of demand? Use the midpoint method.
A) 0.17 B) 0.62
Price Elasticity of Demand = >C) 1.62
Using the midpoint formula, calculate the absolute value of the price elasticity of
demand between e. and f. - AJO.32
B)0.4 () 2.5 D)3.125
PE of Da
10/4/2016 2o. Which of the following statements about price
elasticity of demand is true?
A) The elasticity coefficient is constant along
the demand curve B) The elastic portion of a straight line,
downward-sloping curve corresponds to
the seament above the midpoint C) The inelastic portion of the demand
curve corresponds to the segment above
the midpoint Di At the midpoint of the demand corve,
the elasticity coefficient is zero.
21. Which of the following statements about
the price elasticity of demand along a downward sloping linear demand curve is true?
A) it is inelastic at high prices and
elastic a low prices. B) it is unit elastic throughout the
demand curve. C) It is elastic at high prices and
inelastic at low prices. D. It is perfectly elastic at very high
prices and perfectly inelastic at very low prices
MOH TUE WED
ECON 104 22. Which of the following products comes
closest to having a perfectly inelastic demand?
A) gasoline B) cholesterol medication in general C) iPhones D) bus rides
23. When there are few close substitutes available
for a good demand tends to be
A) perfectly inelastic B) perfectly elastic C) relatively inelastic D) relatively elastic
24. The demand for all carbonated beverages
as a whole is likely to be.
demand for Dr. Pepper.
A more elastic than B) perfectly elastic compared to C) less elastic than D) perfectly inelastic compared to