micro example #77872

The price elasticity of demand measures the extent to which the quantity demanded changes when

To determine the price elasticity of demand, we

If we ignore the negative or positive sign, the midpoint method of calculating a percentage change in price between two points on a demand curve results in

Suppose the price of a box of cereal rises from $4 to $6. Using the midpoint method, what is the percentage change in price?

Suppose the price of a DVD rose from $15 to $17 and the quantity demanded decreased from 1,000 per month to 900 per month. Using the midpoint formula, the ________ percent change in price lead to a ________ percent change in the quantity demanded.

Suppose the local university charges $85 per credit hour. If tuition increases from $85 to $93 per credit hour, using the midpoint method, what is the percentage change in price?

Using the midpoint method, if the price of an airline ticket from Orlando to Pittsburgh falls from $275 to $238, the percentage change in price is

If the demand for a good is elastic, then

When the percentage change in the quantity demanded exceeds the percentage change in price, then demand is

If the percentage change in price is 10 percent and the demand is elastic, then the percentage change in the quantity demanded

If the price of a six-pack of Pepsi falls from $4 to $3 and the quantity purchased increases 80 percent, then demand is

If a 2 percent change in price leads to a ________ percent change in the quantity demanded, then demand is ________.

The price elasticity of supply measures

If the percentage change in the price of a good exceeds the percentage change in the quantity supplied, then the supply is

When the percentage change in the quantity supplied equals the percentage change in price, the supply is

When the percentage change in the quantity supplied is less than the percentage change in price, the supply is

Suppose the current price of barley is $7 per bushel and at that price 100,000 bushels are grown by a Colorado farmer. If the price of barley rises to $8 and quantity supplied increases to 130,000 bushels, then using the midpoint method, the price elasticity of supply for barley equals

The production possibilities frontier is the

Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis. As the country moves along the frontier closer to the horizontal axis,

Moving from one point to another on a production possibilities frontier implies

When all of the available factors of production are being efficiently employed, the

In a production possibilities frontier diagram, the attainable production points are shown as

In the production possibilities frontier model, an unattainable point lies

The table above shows a production possibilities frontier for an economy. Which of the following combinations is unattainable?

The figure above shows the production possibilities frontier for a country. A combination of 4 million gallons of milk and 4 million gallons of ice cream is

The above figure shows the production possibility frontier for an economy. The point or points that are attainable and production efficient are

The opportunity cost of producing one more unit of a good is calculated by dividing the

Allocating resources by the order of someone in authority is a ________ allocation method.

Marginal benefit is the benefit that a person receives from consuming

The marginal benefit of a taco is measured by

Marginal benefit

The point that each glass of lemonade consumed on a hot day brings lower and lower levels of satisfaction is known as the principle of

Marginal cost equals

Moving ________ along the marginal cost curve, the ________.

The marginal cost curves slope upward because of the principle of

Which of the following is necessary for allocative efficiency to be achieved?

The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours. At 1 manatee swim per week, Kaley's marginal benefit is ________ and Scott's marginal cost is ________.

Value and price can be compared by noting that

What must be true for a consumer to buy a good or service?

The demand curve is also the

Consumer surplus exists when

Jake just bought a new hockey stick. When he was leaving the shop, he thought that he such a great deal and would have paid $50 more dollars for the stick. Jake received

Consumer surplus is equal to

Suppose Dan is willing to pay a maximum of $3,000 for a piano, but finds one he can buy for $2,500. Dan's consumer surplus from this piano is

In the figure above, for the 3,000th unit, the maximum price a consumer is willing to pay is

In the figure above, at the market price of $15, the consumer surplus equals

The figure above shows Diane's demand curve for soda. The price of a soda is $1.00. Diane's consumer surplus from her 10th soda is

To a seller, the cost of a good or service is ________ and the price is ________.

The opportunity cost of producing one more unit of a good or service is the

A supply curve is the same as a

The supply curve shows the

In the above figure, what is the marginal cost of the 4th pizza?

Producer surplus is the ________ summed over the quantity produced.

When the price of a product exceeds the marginal cost of producing it, producers have a

The producer surplus of making and selling 10 chairs is found by

Bill and Krista sell potted plants from a roadside stand. The figure above shows Bill and Krista's marginal cost curve and the market price. If Bill and Krista sell 60 plants per week, their producer surplus from the 60th plant will equal

In the figure above, the equilibrium market price is $20. The producer surplus equals

In the figure above, if the market is at equilibrium, then the total consumer surplus equals the area ________ and the total producer surplus equals the area ________.

In the above figure, the market is at its equilibrium. Area A + area B is equal to

When there is market failure so that a market produces less than the efficient amount,

Overproduction results in

In the above figure, if the quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied, then area C + area E is equal to

In the above figure, if the quantity is equal to 2,500,000 units, the deadweight loss is equal to

The figure above shows the market for pants. If the efficient quantity is produced,

The figure above shows the market for pants. If 6 million pairs of pants are produced the deadweight loss is

A budget line shows the

A consumption point inside the budget line

Which of the following statements is correct?

A budget line

Which of the following statements is correct?

Susan can watch movies or attend plays. The table above gives combinations of movies and plays that are on her budget line. If the price of a movie is $10, then her budget for movies and plays is

The figure above shows Sarah's budget line. Sarah earns $500 per week selling baskets made out of tree vines. With this money she buys sushi and rose bushes. Each piece of sushi costs $1 and each rose bush costs $10. Sarah will be at what point on her budget line if she spends $200 per week on sushi?

When the price of a good a consumer buys rises, the consumer's budget line

If the price of the good measured on the x-axis becomes relatively cheaper, the budget line will

When a consumer's budget increases, the budget line

shifts outward.

As more of a good is consumed, total utility

If you get 40 units of utility from eating the first bag of pretzels, 30 from the second bag, and 20 from the third bag, the total utility of three bags of pretzels is ________ units of utility.

Marginal utility is equal to which of the following?

If the total utility of 2 bags of chips is 25, the total utility of 3 bags is 33, and the total utility of 4 bags is 40 units, then the marginal utility of the 3rd and 4th bags are

The above table shows Homer's total utility from boxes of doughnuts. As Homer's consumption of doughnuts increases,

The above table shows Homer's utility from boxes of doughnuts. The marginal utility that Homer receives from the third box of doughnuts is equal to

Diminishing marginal utility means that

The utility-maximizing rule says that consumers must

Marginal utility per dollar is calculated by ________ the price of the good.