Econ 202 chapter 5 homework

what is the midpoint formula

(x1+x2)/2, (y2+y1)/2

good x costs 40 dollars and good y costs 50 dollars. The opportunity cost of buying one unit of good Y is _______ unit(s) of good X. round to 3 decimal points

1.25

consumer surplus formula

base of triangle x height of triangle (divided by)/2

(seperate answers with commas) If the market price of an ICU2 computer​ monitor, whose demand curve is shown​ above, increases from $140 to $160 due to more restrictive disposal fees for​ producers, the ________ (loss, gain) in consumer surplus would be $ ___#____ million. ​(round your response to the nearest million dollars)

loss, 750

(separate answers with commas) Three years after graduating from​ college, you get a promotion and a 35 percent raise. Your consumption habits change accordingly. ​(for all the calculations below round your answer to two decimal​ places, and enter a​ "-" if your answer is​ negative.) suppose your consumption of frozen hot dogs has reduced by 2 percent. your income elasticity of demand is __________. ​thus, we can say that a frozen hot dog is ​a(n) __________ (inferior good, normal good, luxury good).

-.05, inferior good

If the percentage change in quantity demanded for a good is an increase of 25​%, when the price of its substitute increases by 30​%, the​ cross-price elasticity is __________ %(Round your response to the nearest​ hundredth.)

.83

(separate answers with commas) Three years after graduating from​ college, you get a promotion and a 12 percent raise. Your consumption habits change accordingly. Suppose your consumption of pork chops has increased by 8 percent. Your income elasticity of demand is _______ (round decimal tens) Thus, we can say that a pork chop is​ a(n) ____________ (luxury good, normal good, inferior good) .

0.67, normal good

(separate with commas) Three years after graduating from​ college, you get a promotion and a 12 percent raise. Your consumption habits change accordingly. Suppose your consumption of sockeye salmon has increased by 32 percent. Your income elasticity of demand is _______ (round decimal tenths). Thus, we can say that a sockeye salmon is​ a(n) __________ (inferior good, normal good, luxury good). .

2.67, luxury good

what is the formula used to calculate the price elasticity of demand

= (q2-q1)/(q2+q1)^2/(p2-p1)/(p2+p1)^2

How does a​ consumer's budget set differ from his budget​ constraint? A. A budget set refers to all of the possible bundles of goods and services a consumer can​ purchase, while a budget constraint is limited to the bundles he can purchase using all of his income. Your answer is correct. B. A budget constraint refers to all of the possible bundles of goods and services a consumer can​ purchase, while a budget set is limited to the bundles he can purchase using all of his income. C. A budget set is simply the collection of the many budget constraints a consumer faces at different points in time. D. There is no difference at alllong dash—the terms​ "set" and​ "constraint" are interchangeable.

a budget set refers to all of the possible bundles of goods and services a consumer can purchase, while a budget constraint is limited to the bundles he can purchase using all of his income

Which of the following are necessary ingredients to the​ buyer's problem? ​(list letters with commas for answer) A. Consumer's tastes and preferences. B. Employment status of the consumer. C. Consumer's ability to discern product usefulness. D. Prices of goods and services. E. Amount of money the consumer has to spend.

a, d, e

(separate answers with comma) According to​ economists, the process of optimal decision making by consumers typically yields total benefits well above the amount paid for the goods. These​ market-created benefits are referred to as ________________ (consumer surplus​, consumer gain, consumer bonus). Suppose now that the market price falls. According to the​ graph, the excess of total benefits over the total amount spent by consumers will ___________ (decrease, increase, stay the same)

consumer surplus, increase

(separate answers with commas) When the price of bags increases from $11 to $13​, the total expenditure will __________ (remain constant, increase, decrease) because the price elasticity of demand is _____________ (relatively inelastic, unitarily elastic, relatively elastic). .

decrease, relatively elastic

When the price of bags increases from ​$15 to $17​, the total expenditure will __________ (remain constant, increase, decrease) because the price elasticity of demand is _____________ (relatively inelastic, unitarily elastic, relatively elastic).

decrease, relatively elastic

Everything else the​ same, as the price of the good​ increases, quantity demanded _______________ (remains the same, decreases, increases)

decreases

For a consumer with a given level of​ income, the combinations of goods for the budget set will be ______________ (higher, lower) than for the budget

higher

The demand curve shows​ ___________. A. the possible bundles of goods that can be purchased with a​ consumer's income. B. what goods you like compared to other goods and services. C. how the quantity demanded responds to changes in​ consumers' income. D. how the quantity demanded responds to changes in the price of the good.

how the quantity demanded responds to changes in the price of the good

Consider the following​ statement: Given that bacon and eggs are complementary​ goods, if the price of eggs increases the demand for both goods will fall. Is this an accurate​ statement? A. No, the quantity demanded​ (not the​ demand) for both goods is reduce as a result of the increase in the price of eggs. B. It is somewhat inaccurate. The increase in the price of eggs will reduce the quantity demanded​ (not the​ demand) for bacon. It​ will, however, as the statement​ claims, reduce the demand for eggs. C. Yes, the increase in the price of eggs will reduce both the demand for eggs and the demand for bacon . D. It is somewhat inaccurate. The increase in the price of eggs will reduce the quantity demanded​ (not the​ demand) for eggs. It​ will, however, as the statement​ claims, reduce the demand for bacon.

it is somewhat inaccurate. the increase in the price of eggs will reduce the quantity demanded​ (not the​ demand) for eggs. it​ will, however, as the statement​ claims, reduce the demand for bacon

suppose HannaHanna has ​$200 to spend rather than ​$100. How will this change affect Hanna budget​ line? A. It shifts inward in a parallel fashion. B. It​ pivots, moving leftward along the horizontal axis and outward along the vertical axis. C. It shifts outward in a parallel fashion. D. It does not move.

it shifts outward in a parallel fashion

Consider the following​ statement: Given that burgers and fries are complementary​ goods, if the price of fries decreases the demand for both goods will rise. Is this an accurate​ statement? A. Yes, the decrease in the price of fries will increase both the demand for fries and the demand for burgers. B. No, the quantity demanded​ (not the​ demand) for both goods is increase as a result of the decrease in the price of fries. C. It is somewhat inaccurate. The decreased in the price of fries will increase the quantity demanded​ (not the​ demand) for burgers. It​ will, however, as the statement​ claims, increase the demand for fries. D. It is somewhat inaccurate. The decrease in the price of fries will increase the quantity demanded​ (not the​ demand) for fries. It​ will, however, as the statement​ claims, increase the demand for burgers.

it somewhat inaccurate. the decrease in the price of fries will increase the quantity demanded​ (not the​ demand) for fries. it​ will, however, as the statement​ claims, increase the demand for burgers

Suppose​ Hershey's increases the price of its chocolate syrup by 17 percent. In​ response, the quantity demanded of Nesquik chocolate syrup rises by 12 percent and the quantity demanded of​ Breyer's vanilla ice cream falls by 5 percent. The​ cross-price elasticity of demand between​ Hershey's syrup and​ Breyer's vanilla ice cream is _____________ (negative, positive, indeterminate) implying these two goods are ____________ (substitutes, complements, normal goods).

negative, complements

Charley spends all of his income on soft drinks and pizza. Suppose he is currently buying these products in amounts such that his marginal benefit from an additional soft drink is $ 170 and his marginal benefit from an additional slice of pizza is $ 80. If the price of a soft drink is $ 3 and the price of a slice of pizza is $ 4​, is Charley maximizing his total​ benefits? A. Yes, there is no other consumption choice that will make his total benefits greater. B. No, he should shift consumption toward soft drinks and away from pizza to maximize total benefits. C. No, he should increase his consumption of both goods. D. No, he should shift consumption toward pizza and away from soft drinks to maximize total benefits

no, he should shift consumption toward soft drinks and away from pizza to maximize total benefits

Suppose​ Hershey's increases the price of its chocolate syrup by 17 percent. In​ response, the quantity demanded of Nesquik chocolate syrup rises by 12 percent and the quantity demanded of​ Breyer's vanilla ice cream falls by 5 percent. Suppose that incomes rise by 9 percent given the price change cited above. As a​ result, Hershey's experiences a 5 percent increase in sales volume. Given this​ information, Hershey's syrup is a _____________ good.

normal

Suppose​ Hershey's increases the price of its chocolate syrup by 17 percent. In​ response, the quantity demanded of Nesquik chocolate syrup rises by 12 percent and the quantity demanded of​ Breyer's vanilla ice cream falls by 5 percent. The​ cross-price elasticity of demand between​ Hershey's syrup and​ Nesquik's syrup is _________ (positive​, negative, indeterminate), implying these two goods are ____________ (complements, substitutes, normal goods).

positive, substitutes