economics chapter 5
See Figure 19.1. Lu's consumer surplus is equal to
$500.
Table 19.1.jpg Refer to Table 19.1. The marginal utility Josh enjoys from the fourth slice of pizza is
5 utils.
Complete Table 19.3 below. Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit. Table 19.3.jpg In Table 19.3, what is the total utility of two units of cola?
72.
If a product has a high marginal utility, then
A consumer is willing to pay a high price for it.
When economists refer to the determinants of demand, they are referring to factors that
Cause the demand curve to shift left or right.
Marginal utility is the
Change in total utility obtained by consuming one extra unit of a good or service.
Consumer surplus does not exist because some consumers cannot afford to purchase the product at all.
False
Price discrimination occurs when stores mark down products for sale.
False
Status and ego considerations in consumption are economic explanations of demand.
False
Price discrimination
Is a way for sellers to exact the maximum willingness to pay from buyers
The additional pleasure or satisfaction from a good declines as more of it is consumed in a given period. This is the definition of the
Law of diminishing marginal utility.
Maximum utility is achieved when
Marginal utility is zero.
The law of diminishing marginal utility suggests that
People are willing to buy additional quantities of a good only if its price falls.
rosa is willing to pay $200 for the iPhone, but the actual price is $400. This means
Rosa will not enjoy any consumer surplus from purchasing the iPhone.
Price discrimination occurs when
Sellers charge two separate prices for the same product to two different group
Which of these examples is an example of price discrimination?
Seniors pay one price at the movie theater and adults pay more
The marginal utility for a good is computed as
The change in total utility divided by the change in quantity.
Consumer surplus measures
The difference between the maximum price a consumer is willing to pay and the price actually paid
If the equilibrium price rises,
The producer surplus will fall.
According to the law of demand, ceteris paribus,
The quantity demanded increases at lower prices
The market demand for a product is
The sum of all of the individual demands for that product.
Economists focus on the effect of changes in income and prices in influencing actual consumer purchases.
True
The ___________ surplus will rise if the price of the good ________.
consumer; falls
The _________ of the demand curve corresponds to the idea that the marginal utility for the first few goods is _____________________.
top; higher
The law of diminishing marginal utility gives us insight into the downward-sloping demand curve because consumers are willing to pay a higher price for goods with high marginal utility.
true
