ECON ch 5
Chen's total utility from consuming five slices of pizza is 10 utils. After consuming her sixth slice, her total utility rises to 11 utils. The marginal utility of the sixth slice is
1
Simon's total utility from consuming one t-shirt is 30 utils. After consuming his second t-shirt, his total utility rises to 50 utils. The marginal utility of the second t-shirt is ___ utils
20
Suppose Charlie had three slices of pizza for lunch. If the first slice gave him 10 utils of satisfaction, the second 8, and the third 4, then his total utility from lunch was
22
______ is calculated as the difference between the maximum price a consumer is willing to pay for a product and the actual price paid.
Consumer surplus
The idea that we strive for ever higher levels of consumption to satisfy basic drives for security, sex, and ego gratifications is the _______ perspective of demand.
Freudian
According to the law of diminishing marginal utility, what happens to additional satisfaction or utility as a consumer acquires additional units of a given product?
It declines
Which of the following does the idea of diminishing marginal utility help to explain?
Law of demand
utility is the extra satisfaction or pleasure a consumer realizes from consuming an additional unit of a particular product.
Marginal
What is the term used to refer to charging different prices to different buyers of a specific product?
Price discrimination
How is total revenue calculated?
Price × Quantity
____ utility is the full amount of satisfaction or pleasure a person derives from consuming some specific quantity—for example, 10 units of a good or service.
Total
True or false: Economists accept consumer tastes as the outcome of sociopsychiatric and cultural influences.
True
True or false: The utility of a good is the pleasure or satisfaction obtained from a product.
True
is the satisfaction or pleasure one gets from consuming a good or service. (Use only one word per blank.)
Utility
A consumer's desires for goods and services are assumed by economists to originate in the structure of personality and social dynamics and _____ explained by economic theory.
are not
The law of diminishing marginal utility explains why the___ curve for a given product slopes downward.
demand
The willingness and ability to buy specific quantities of a good at alternative prices in a given time period, Ceteris Paribus, is the definition of
demand
The willingness and ability to buy specific quantities of a good at alternative prices in a given time period, Ceteris Paribus, is the definition of ______.
demand
A consumer's maximum willingness to pay for a Porsche 918 Spyder ___
depends on their preferences, income, and tastes, shows where they are positioned on the market demand curve
When Hannah consumes apples, and each additional apple yields a smaller amount of additional satisfaction, she is exemplifying the law of ______.
diminishing marginal utility
When Marco consumes successive slices of pizza, and each additional slice yields a smaller amount of additional satisfaction, he is experiencing the law of:
diminishing marginal utility
The downward-sloping demand curve illustrates the declining nature of marginal utility because people are willing to buy additional quantities if the price ______.
falls
Consumer surplus is the difference between the _____ price a consumer is willing to pay for a product and the price actually paid.
highest
Marginal utility
is the extra satisfaction from the consumption of one more unit of some good or service
The market demand curve for a good _____.
is the sum of all the individual demand curves for the good
Because marginal utility diminishes, consumers are willing to pay progressively _____ for additional quantities of a product.
less
The law of diminishing ___utility states that added satisfaction declines as additional units of a given product are consumed.
marginal
The total quantities of a good or service people are willing and able to buy at alternative prices in a given time period is
market demand
The more marginal utility a product delivers, the
more a consumer will be willing to pay for it.
The idea that we strive for ever higher levels of consumption to satisfy basic drives for ____, sex, and ego gratifications is the Freudian perspective of demand.
security
Economists say that as we consume successive units of a good, we get smaller and smaller amounts of marginal or extra utility. This claim is known as
the law of diminishing marginal utility
If a person is not willing to buy a new car, then
their willingness to pay for a new car is $0, they are not part of the market demand for a new car
___is the amount a seller receives from selling a product during some period of time
total revenue
Total ___is the amount of satisfaction or pleasure a person obtains from the entire consumption of a product.
utility
For illustration purposes, utility can be measured in terms of imaginary units called
utils