MBA 651 - QUIZ #3 QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
If you are in the business of selling chicken and the price of selling chicken and the price of beef both
were to drop dramatically, what should you do with your inventory level of chicken? - Answers
increase the inventory.
Joe prefers a three pack of soda to a six-pack. What properties does this preference violate? -
Answers More is better.
The budget set defines the combinations of good X and Y - Answers that are affordable to the
consumer.
A cash gift causes the budget line - Answers to shift to the right in a parallel fashion.
If a firm offers to pay a worker $10 for each hour of leisure the worker gives up the $10 implies -
Answers the market rate of substitution between leisure and income.
If you were running an advertising campaign for designer men's suits, you should target families with:
- Answers higher incomes.
A price decrease causes a consumer's "real" income to: - Answers increase.
Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and he can
use 24 hours per day. What is the minimum the worker can earn in a day? - Answers $100.
If you include in your offerings some inferior goods, the demand for these products will increase -
Answers during bad economic times.
The demand for good X is estimated to be Q xd = 10,000 - 4PX + 5PY + 2M + AX, where PXis the price
of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the
present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this
information, goods X and Y are - Answers substitutes.
If the own price elasticity of demand is infinite in absolute value, then - Answers the demand curve is
horizontal.
Persuasive advertising influences demand by: - Answers altering the underlying tastes of consumers.
Suppose market demand and supply are given by Q d = 100 - 2P and Q S = 5 + 3P. The equilibrium
price is: - Answers $19.
If an increase in the price of good X leads to a decrease in the consumption of good Y, then goods X
and Y are called - Answers complements.
If sugar and Nutrasweet are substitutes, then we can be certain that a decrease in the price of sugar
will lead to - Answers an increase in the consumption of sugar.
The substitution affect isolates the change in the consumption of a good caused by: - Answers the
change in the market rate of substitution.
Along the same indifference curve, MRS is - Answers decreasing as more of one good is obtained.
The revenues earned by the firm from the consumer may be maximized under - Answers the buy one
get one free offer.
The difference between a price increase and a decrease in income is that - Answers A decrease in
income does not affect the slope of the budget line while an increase in price does change the slope.
What is the maximum amount of good Y that can be purchased if X and Y are the only two goods
available for purchase and Px = $10, Py = $15, X = 30, and M = 600? - Answers 20
If a consumer's income decreases, what will happen to the budget line? - Answers It will shift inward
Managers can get workers to work longer hours - Answers with higher overtime pay in excess of
regular hourly pay
If you are in the business of selling chicken and the price of selling chicken and the price of beef both
were to drop dramatically, what should you do with your inventory level of chicken? - Answers
increase the inventory.
Joe prefers a three pack of soda to a six-pack. What properties does this preference violate? -
Answers More is better.
The budget set defines the combinations of good X and Y - Answers that are affordable to the
consumer.
A cash gift causes the budget line - Answers to shift to the right in a parallel fashion.
If a firm offers to pay a worker $10 for each hour of leisure the worker gives up the $10 implies -
Answers the market rate of substitution between leisure and income.
If you were running an advertising campaign for designer men's suits, you should target families with:
- Answers higher incomes.
A price decrease causes a consumer's "real" income to: - Answers increase.
Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and he can
use 24 hours per day. What is the minimum the worker can earn in a day? - Answers $100.
If you include in your offerings some inferior goods, the demand for these products will increase -
Answers during bad economic times.
The demand for good X is estimated to be Q xd = 10,000 - 4PX + 5PY + 2M + AX, where PXis the price
of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the
present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this
information, goods X and Y are - Answers substitutes.
If the own price elasticity of demand is infinite in absolute value, then - Answers the demand curve is
horizontal.
Persuasive advertising influences demand by: - Answers altering the underlying tastes of consumers.
Suppose market demand and supply are given by Q d = 100 - 2P and Q S = 5 + 3P. The equilibrium
price is: - Answers $19.
If an increase in the price of good X leads to a decrease in the consumption of good Y, then goods X
and Y are called - Answers complements.
If sugar and Nutrasweet are substitutes, then we can be certain that a decrease in the price of sugar
will lead to - Answers an increase in the consumption of sugar.
The substitution affect isolates the change in the consumption of a good caused by: - Answers the
change in the market rate of substitution.
Along the same indifference curve, MRS is - Answers decreasing as more of one good is obtained.
The revenues earned by the firm from the consumer may be maximized under - Answers the buy one
get one free offer.
The difference between a price increase and a decrease in income is that - Answers A decrease in
income does not affect the slope of the budget line while an increase in price does change the slope.
What is the maximum amount of good Y that can be purchased if X and Y are the only two goods
available for purchase and Px = $10, Py = $15, X = 30, and M = 600? - Answers 20
If a consumer's income decreases, what will happen to the budget line? - Answers It will shift inward
Managers can get workers to work longer hours - Answers with higher overtime pay in excess of
regular hourly pay
