HBX Core Economics for Managers Exam | Verified Exam Questions and
Answers | Latest Updated Study Material 2026
Question:
HBX Core Economics for Managers Exam | Comprehensive
What is the demand?
Answer:
You need a benchmark, find out what
people are willing to pay
Question:
WTP
Answer:
willingness to pay
Question:
*maximum price you are willing to pay for a product or service.
** it does not relate to you necessarily
***WTP AND PRICE are two totally different concepts
irrationality
Answer:
paying more than WTP
Question:
Actual value
Answer:
= WTP
Question:
intrinsic vs extrinsic
Answer:
Differences in consumer WTP that arise
from differences in, say, age, gender, income, or education are what we call "extrinsic" or
"observable" differences
, Question:
Other differences are "intrinsic"-things that you couldn't know about a person without asking
him or her. They're hard to observe (and for that reason are also referred to as "unobserved
differences"). For example, a person's tolerance for risk, his or her wish to fit in with others or
stand out from others, or even the intensity of his or her passion for Taylor Swift or the New
England Patriots.
if there is a sale going on
Answer:
your WTP does not change
Question:
The demand curve
Answer:
flip graph, create steps, inversely related
Question:
demand curve- quantity on x axis, price on y axis
revenue
Answer:
the rectangle under demand
Question:
price x number of consumers
shifting demand curve
Answer:
You recall that the demand curve is
nothing more than a depiction of many people's WTP. So as people's WTP changes, the demand
curve will also change. Specifically, when a factor that affects people's WTP changes, the
demand curve will shift (left or right) in response. Why? Because now, at any given price the
number of people with a WTP equal to that price will be different (higher or lower, depending on
the event).
Question:
A cautionary note: notice that price is not a factor that shifts the demand curve
diminishing marginal returns
Answers | Latest Updated Study Material 2026
Question:
HBX Core Economics for Managers Exam | Comprehensive
What is the demand?
Answer:
You need a benchmark, find out what
people are willing to pay
Question:
WTP
Answer:
willingness to pay
Question:
*maximum price you are willing to pay for a product or service.
** it does not relate to you necessarily
***WTP AND PRICE are two totally different concepts
irrationality
Answer:
paying more than WTP
Question:
Actual value
Answer:
= WTP
Question:
intrinsic vs extrinsic
Answer:
Differences in consumer WTP that arise
from differences in, say, age, gender, income, or education are what we call "extrinsic" or
"observable" differences
, Question:
Other differences are "intrinsic"-things that you couldn't know about a person without asking
him or her. They're hard to observe (and for that reason are also referred to as "unobserved
differences"). For example, a person's tolerance for risk, his or her wish to fit in with others or
stand out from others, or even the intensity of his or her passion for Taylor Swift or the New
England Patriots.
if there is a sale going on
Answer:
your WTP does not change
Question:
The demand curve
Answer:
flip graph, create steps, inversely related
Question:
demand curve- quantity on x axis, price on y axis
revenue
Answer:
the rectangle under demand
Question:
price x number of consumers
shifting demand curve
Answer:
You recall that the demand curve is
nothing more than a depiction of many people's WTP. So as people's WTP changes, the demand
curve will also change. Specifically, when a factor that affects people's WTP changes, the
demand curve will shift (left or right) in response. Why? Because now, at any given price the
number of people with a WTP equal to that price will be different (higher or lower, depending on
the event).
Question:
A cautionary note: notice that price is not a factor that shifts the demand curve
diminishing marginal returns
