Category: Supply and Demand

A. Price elasticity of demand
B. Cross-price elasticity of demand
C. budget elasticity of demand
D. income elasticity of demand

A. Utility is at a maximum with the first unit
B. Increasing units of consumption increase the marginal utility
C. Marginal product will fall as more units are consumed
D. Total utility will rise at a falling rate as more units are consumed

A. A change in wealth
B. A change in the price of compact discs
C. A change in income.
A change in the price of pre-recorded cassette tapes

A. marginal cost to increase, output to fall
B. marginal revenue to increase output to fall
C. opportunity cost to increase the firm will close
D. average cost will rise output will increase ____ output and an upward shift in marginal revenue ____ output

A. shift aggregate supply to the right
B. shift aggregate supply to the left
C. shift aggregate demand to the right
D. shift aggregate demand to the left

A. -4
B. 0.25
C. 4
D. -0.25

A. Should increase output
B. Should reduce output
C. will require further information on how to respond
D. Should not change output

A. 550 units
B. 500 units
C. 450 units
D. 490 units

A. Shift demand for an inferior product outward
B. shift demand for an inferior product inward
C. shift supply for an inferior product outward
D. Shift supply for an inferior product inward

A. The responsiveness of quantity demanded to a change in price
B. How far a demand curve shifts
C. a change in price
D. a change in quantity demanded