1 of 50
Definition
In economics, the pleasure, happiness, or satisfaction received from
a product is called
A) marginal cost.
B) rational outcome.
C) status fulfillment.
D) utility.
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C B
D A
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, 2 of 50
Definition
Because successive units of a good produce less and less additional
satisfaction, the price must fall to encourage a buyer to purchase
more units of the good. This statement is most consistent with which
explanation for the law of demand?
A) diminishing marginal utility
B) the rationing function of prices
C) the substitution effect
D) the income effect
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C A
B D
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3 of 50
Definition
Which of the following is not characteristic of the demand for a
commodity that is elastic?
A) The relative change in quantity demanded is greater than the
relative change in price.
B) Buyers are relatively sensitive to price changes.
,C) Total revenue increases if price is increased.
D) The elasticity coefficient is greater than one.
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B D
C A
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4 of 50
Definition
The law of demand states that, other things equal,
A) price and quantity demanded are inversely related.
B) the larger the number of buyers in a market, the lower will be
product price.
C) price and quantity demanded are directly related.
D) consumers will buy more of a product at high prices than at low
prices.
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B D
C A
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5 of 50
Definition
According to the concept of diminishing marginal utility, consumers
will purchase more of a good when the price falls because
A) substitutes are relatively more expensive.
B) consumers' real income has increased.
C) the marginal benefit of additional units of the good now outweigh
the marginal cost.
D) the good is now perceived as having higher quality.
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C A
D B
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6 of 50
Definition
If the elasticity coefficient of supply is 0.7, supply is elastic. (T/F)
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Definition
In economics, the pleasure, happiness, or satisfaction received from
a product is called
A) marginal cost.
B) rational outcome.
C) status fulfillment.
D) utility.
Give this one a try later!
C B
D A
Don't know?
, 2 of 50
Definition
Because successive units of a good produce less and less additional
satisfaction, the price must fall to encourage a buyer to purchase
more units of the good. This statement is most consistent with which
explanation for the law of demand?
A) diminishing marginal utility
B) the rationing function of prices
C) the substitution effect
D) the income effect
Give this one a try later!
C A
B D
Don't know?
3 of 50
Definition
Which of the following is not characteristic of the demand for a
commodity that is elastic?
A) The relative change in quantity demanded is greater than the
relative change in price.
B) Buyers are relatively sensitive to price changes.
,C) Total revenue increases if price is increased.
D) The elasticity coefficient is greater than one.
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B D
C A
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4 of 50
Definition
The law of demand states that, other things equal,
A) price and quantity demanded are inversely related.
B) the larger the number of buyers in a market, the lower will be
product price.
C) price and quantity demanded are directly related.
D) consumers will buy more of a product at high prices than at low
prices.
Give this one a try later!
B D
C A
, Don't know?
5 of 50
Definition
According to the concept of diminishing marginal utility, consumers
will purchase more of a good when the price falls because
A) substitutes are relatively more expensive.
B) consumers' real income has increased.
C) the marginal benefit of additional units of the good now outweigh
the marginal cost.
D) the good is now perceived as having higher quality.
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C A
D B
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6 of 50
Definition
If the elasticity coefficient of supply is 0.7, supply is elastic. (T/F)
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