1) total revenue will increase if price:
A) rises and demand is elastic
B) rises and demand is unit elastic
C) falls and demand is inelastic
D) falls and demand is elastic
2) cross elasticity of demand measures the response in:
A) the quantity of one good demanded to a change in the price of another good
B) the income of consumers to the change in the price of goods.
C) the price of a good to a change in the quantity of another good demanded
D) quantity of one good demanded when the quantity demanded of another good changes
3) a person would be maximizing her total utility when:
A) she had a consumer surplus
B) her marginal utility was zero
C) her marginal utlity was equal to her total utility
D) she had no consumer surplus
4) melissa says she will have to be paid in order to even try jason's cooking,
so her marginal utility for jason's cooking is:
A) constant
B) increasing
C) positive
D) negative
5) according to the general utility formulas, the marginal utility of a good divided by the price of that good is:
A) less than negative one
B) equal to one
C) greater than one
D) equal to zero
6) if your marginal utility from your last session with your personal trainer is equal to the price she charged you, then:
A) you have had exactly the right number of sessions
B) you have had to many sessions
C) you have not had enough sessions
D) there is no way to determine whether you have had enough sessions
7) a decrease in the demand for a service means that the:
A) demand curve shifts to the right
B) demand curve shifts to the left
C) supply curve shifts to the right
D) supply curve shifts to the left
8) the market demand curve is derived:
A) so that is slopes downward and to the left as quantity rises
B) by totaling the average demands for products in all markets
C) by horizontally summing potential buyers' individual demand curves
D) by vertically summing the demand curves of individuals in the market
9) an increase in supply means that quantity supplied rises at:
A) least one price
B) a few prices
C) most prices
D) all prices
10) when the market price is lower than the equilibrium price, there is:
A) a surplus
B) a shortage
C) both a shortage and a surplus
D) meither a shortage nor a surplus