micro final

a perfect competitor cannot

raise the market price of a product

gary parker has decided he is willing to pay $700 for a new ipad. Apple is selling a new ipad for $600. It costs apple $400 to produce this ipad. How much economic surplus does gary recieve if he purchases this ipad

$100

amanda mendez goes to a local café and orders a sandwhich. her willingness to pay for that sandwhich is $10. The price of the sandwhich is $4. the cost to the cafe to produce the sandwhich is $1. how much economic surplus does amanda recieve when she purchases the sandwhich?

$6

delilahs income rises by 8%. She decides to increase the number of movie tickets she purchases by 20%. Her income elasticity of demand for movie tickets is

2.5

if there is a technological advance in the production of the Amazon Echo smart speaker, then you would expect to see ______ in the market equilibrium price

an eventual fall in the equilibrium price

the demand curve for one particular brand of cough syrup will _____ the demand curve for cough syrup as a general category

be more elastic than

the price elasticity of demand for beef is estimated to be 0.60 (in absolute value). This means that a 20 percent increase in the price of beef, holding every thing else constant will cause the quantity of beef demanded to

decrease 12 percent

the table above shows the demand schedules for loose leaf tea of two individuals and the rest of the market. if the price of loose leaf tea rises from $3 to $4 the market quantity deanded would

decrease by 32lbs

an equilibrium price is

determined by the intersection of the demand and supply curves

if demand is ____ a higer price yeilds ______ total revenue

inelastic; higher

when you calculate marginal costs they should include

only variable costs

increasing the price of the item will cause the movement from

point N to point M

sunk costs are costs that are incurred

regardless of which decision is made

a decrease in price of inputs wouold be represented by a movement from

s1 to s2

the marginal benefit of consuming an item is

the additional benefit from buying one more unit of the item

the law of supply refers to

the positive relationship between price and quantity supplied

the price of coffee at a local coffee shop is $3. Cherly is willing to pay $6 for her first cup of coffee each day. The marginal benefit to her of each additional cup of coffee, after her first, falls by $2. How many cups of coffee should cherly purchase?

two

following the rational rule implies economic surplus is maximized when

marginal benefits equal marginal costs

what happens to the equilibrium price and equilibrium quanitity when demand and supply increase simultaneously but we do not know the relative size of the shifts>

the equilibrium quantity rises and the equilibrium price is ambiguous

rising marginal costs imply

an upward sloping supply curve

a inferior good is

a good whose has a negative relationship with changes in income

Juan mcdonald has decided he is willing to pay $800 for a new ipad. Apple is selling a new ipad for $700. It costs apple $400 to produce this iPad. A voluntary economic transaction between Juan and Apple ________ occur because _______ would be better off due to the transaction

will; both Juan and Apple

if the price is $15

there would be a shortage of 300 units

what is the equilibrium price in this market

$50

at what price does this market experiance a shortage of 70 units

$7

the price of milk at the local grocery store rises by 25% and the quantity of milk demanded falls by 10%. The absolute value of the price elasticity of demand for milk is _______, and demand is ______

0.4% inelastic

the price of product c rises by 10%. As a result the quantity demanded of product D rises by 20% .the cross price elasticty of demand between product c and product d is _______ and they are _______

2; substitutes

Take a look at leonards individual weekly demand curve for pizza slices. How many slices of pizza is leonard willing to buy at $3 per slice

5 slices

In the graph the movement from point E to point F represents

a decrease in quantity supplied

which of the following market changes would lead to a shift of the demand curve from old demand to new demand

an increase in the price of a substitute product

Vineyards can grow either red wine grapes or white wine grapes on their land. Which of the following would cause the supply of red wine grapes to decrease?

an increase in the price of white wine grapes

If an increase in income leads to a decrease in the demand for popcorn, then popcorn is

an inferior good

diminishing marginal benefit

can be seen in the downward slope of the demand curve

according to the margincal principle, keep increasing quantity until the marginal benefit of an additional item is ______ the marginal cost of an additional item

equal to

as a result of technological innovation automated water pumps are being installed on the farms of kenyan tomato farmers. as a result of the increased use of automated water pumps the equilibrium price of tomatoes will

fall due to an increase in supply

you go to starbucks and see the price of your favorite tall vanilla latte has gone up by 25 cents. In fact all sizes of the vanilla latte are now more expensive. as a result of this price increase, you would expect to see a

fall in the quantity demanded of vanilla lattes

opera estates girls school is considering increasing its tuition to raise revenue. if the school believes that raising tuition will increase revenue

it is assuming that the demand for attending the school is inelastic

daisy is a milk farmer in a perfectly competitve market where there are many milk farmes. the market price of milk is 0.15$ per gallon, which is also the marginal cost per gallon of milk. if daisy charges $0.25 per gallon she will:

not sell any milk

cosider the decision to read your textbook on economics. which of the four core principles of economics applies to the notion that instead of reading this textbook you could be studying for your upcoming exam in a different class?

oppurtunity cost principle

assume that the graphs in this figure represents the demand and supply curves for bicycle helmets. which panel best describes what happens in this market if there is a substantial increase in the price of bicycles

panel d

you are given data on 4 products- toothpaste, soap, shampoo, and laundry detergent. The absolute value of the price elasticty of demand for toothpaste is 4. The absolute value of the price elasticity of demand for shampoo is 0.2. The absolute value of price elasticity of soap is 0.5. the absolute value of the price elasticity of demand for laundry detergent is 2. Which product has the most inelastic demand?

shampoo

It is a rainy day, and you are considering taking an uber one mile to meet some friends. You have decided you are willing to pay $20 to avoid getting wet from the rain. The trip would normally cost $8 but there is a two times subcharge due to the weather. You should _______ because the benefit of you taking the uber is _______ than the cost

take an uber; more

the phrase "demand has decreased" means that

the demand curve has shifted to the left

the figure shows a market for avocados which of the following is correct about this market between points A and B

the demand curve is inelastic and thus the seller gains revenue by raising price from $1.50 to $1.75

suppose that the paper production industry can choose to produce both printing paper and drawing paper. what effect would rising market prices for printing paper have on the market for drawing paper?

the supply of drawing paper would decrease

the table shows the monthly individual demand schedules of four students for soda. what is the change in the total market demand for soda when the price changes from $1.50 per can to $2 per can?

the total quantity demanded in the market falls by 23 cans