Unit 3 Econ

according to the diagram, what is the dollar amount of the unit tax

D. 1.00

the table above shows the total benefits Tony gets form eating different quantities of apples

D. 4

if the total income elasticity of demand for good X is negative and the cross price elasticity of demand between good X and good Y is negative which of the following must be true of good X

D. A is an inferior good and is a complement to Y

The demand curves X and Y are shown in the graph above. Which of the following offers the most accurate comparison of the price elasticities of demand curves X and Y at a price of $4?

D. Demand curve X- relatively inelastic Demand curve Y- perfectly elastic

the diagram above, if there is a price ceiling set at P1, consumers surplus will be represented by

D. P3ACP1

if the value of the price elasticity of supply is 3, which of the following is true

D. a 10% decrease in price will decrease the quantity supplies by 30%

Assume that Larry spends his entire allowance on the purchase of pretzels and ice-cream

D. buy fewer pretzels and more ice cream cones

to determine whether two good are complements one world calculate the

D. cross price elasticity of demand

suppose that the demand for vegetables is price elastic. if the price of vegetables increases by 5%, the quantity of the vegetables

D. decrease by more than 5%

moving from left to right along a downward sloping linear demand curve

D. first elastic, then unit elastic, and finally inelastic

a 10% increase in Sandras income causes Sandras consumption milk

D. less that zero therefor milk is an inferior good

Assuming a downward-sloping demand curve and an upward-sloping supply curve, which of the following will occur as a result of an increase in the sales tax on a good?

D. quantity demanded will decrease

assume that the price of orange juice increases by 40% following a crop failure

D. the absolute value of the price elasticity of demand for orange juice is 0.25

which of the following is true if consuming one unit of good yields 100 utils

D. the total utility of consuming two units is 120

which of the following statements relating to income elasticity is true

D. with an income elasticity coefficient of 5, a 10 percent increase in income will lead to a 50% increase

mickey has a 20$ gift card that she is planning to use to download 10 songs

C. more games fewer songs

what is the price paid by consumers and the net price received by producers after the tax is paid

C. paid by consumers- 10.45 received by producers 9.45

If a severe drought destroys a significant portion of the peanut crop and peanut farmers' revenues increase, which of the following is true over the observed range of prices?

C. the demand for peanuts must be unit price inelastic

in relation to tacos, the cross price elasticity of demand for good X in negative. what would be the result if the price of the tacos increases

not A

which of the following is true of the cross price elasticity of demand

B. it is greater than zero for two goods that are substitutes

if a 10% increase in the price of a good leads to a 25% decrease in the quantity demanded

B. relatively elastic

according to the law of diminishing marginal utility, which of the following is true

B. the additional satisfaction received from consuming extra units of a good decrease as consumption fo the good increases

the absolute value of the price elasticity of demand for a good increases when

B. the good becomes necessity

if the demand for product X is perfectly elastic and the supply of product X decreases. which of the following will occur in the market

B. total revenue will decrease

Assume the income elasticity of demand for good Z equals −5.0. Which of the following is true?

C An increase in income will lead to a decrease in demand.

in the figure above, at which of the given points is demand most elastic

C. Z

After the government imposed a $0.20 per gallon tax on gasoline, the price of a gallon of gasoline increased from $1.00 to $1.15. Which of the following statements is true?

C. consumers bear most, but not all of the tax burden

assume that a 2% increase in the price of bologna causes a 5% decrease in the demand for cheese

C. cross price elasticity of demand equals -2.5 and these goods are complements

In a given time period, a person consumes more and more of a good or service and, as a result, enjoys each additional unit less and is willing to pay less for each additional unit. This behavior is consistent with the law of

C. diminishing marginal utility

If the price elasticity of supply for pickles is 2 and the price of pickles increases

0.2%

at her current level of consumption, a consumer is willing to pay up tp 1.50% for a bottle of water

C. marginal utility of the bottle of water is less than the marginal utility of the diamond ring

the graph above shows the market for good X. the letters in the graph demote the enclosed areas

A. consumer surplus- A producer surplus- G Deadweight loss- D + E

if the market demands for a good is inelastic and the supply is elastic, which of the following is true

A. consumers will bear most of the burden of the tax

the following chart shows the total utility that Juan receives from consuming various

A. his marginal utility from the first candy bar is greater than his marginal utility from the second candy bar

assume a 10% increase in price increased the market quantity supplies by 20%

A. the value of the price elasticity of supply is 2

which of the following statements about the price elasticity of demand is true

A. when demand is price inelastic, total revenue will decrease as price increases

the total amount of tax collected by the government is equal to

B. P1GiP2

assume the government imposes a $4 per-unit tax on sellers of a good

B. Price paid by buyers- 8$ price received by sellers- 4$ deadweight loss- 200$

assume the price of a candy bar is 2$ and the price of a bag od chips is 3$

B. buying more candy bars and fewer bags of chips

the diagram above shows Sallys utility function for chocolate

B. diminishing marginal utility

the cross price elasticity of demand between goods J and K is -3. A 20% decrease in the price of good K

E. 60% increase in the quantity demanded for good J

the diagram above, the demand and supply curves for good x. the perfectly competitive market

E. Q1lKQ3

which of the following best describes how a consumer maximizes total utility from

E. by choose the combination of goods such that the marginal utility per dollar

when marginal utility is falling but positive, total utility will

E. increase at a decreasing rate

to maximize utility, a consumer with a. fixed budget will purchase quantities of goods so that the ratios

E. price are equal

which of the following relationships among the price elasticity of demand. change in price, and change in total revenue is consistent

E. price elasticity of demand- inelastic change in price- change in total revenue- decrease

If a 10% increase in the price of good X results in a 20% decrease in the quantity of good Y

Good X and Good Y are complementary goods, and the cross-price elasticity is -2

which of the following bears the total tax burden

The consumers and the producers each bear a part of it.