Total revenue is determined by

price multiplied by the quantity

In the Law of Demand, "ceteris paribus" assumes that

Price is the only factor infuencing purchasing decisions

All of the following can cause an increase in supply EXCEPT

fewer sellers in the marketplace

A consumer has utility when

Marginal Utility is greater or equal to Marginal Cost

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Unit 3 Microeconomics Review

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Questions 25

Answers

1
Price floors are likely to create
an equilibrium
a price ceiling
a surplus
a shortage
2
All of the following have relatively inelastic demand EXCEPT
chocolate donut
prescription drugs
tobacco products
a doctor's services
3
When the revenue is higher with the higher price demand is
supply and demand elastic
inelastic
elastic
unit elastic
4
What all consumers want to maximize
None of these
Quantity demanded
Utilty
Demand
5
All are complements EXCEPT
flashlights and batteries
Dr. Pepper and Pepsi
peanut butter and jelly
milk and cookies
6
Hot dogs and hot dog buns are considered
both
neither
complements
substitutes
7
If there is a shortage in the market, the price is likely to
fluctuate
decrease
remain the same
increase
8
Hamburgers and chicken sandwiches are considered
complements
both
neither
substitutes
9
A cellphone and a phone case are considered
substitutes
both
neither
complements
10
A movement upward along the supply curve shows
increase supply
increase price
decrease price
decrease supply
11
Increased government regulations can cause the supply curve to
shift to the right
movement down the curve
movement up the curve
shift to the left
12
An increase in quantity demanded shows a(n)
decrease in price
increase in demand
decrease in demand
increase in price
13
A decrease in quantity demanded shows a(n)
increase in price
decreased demand
increased demand
decrease in price
14
The demand curve is
upward sloping
u shaped
downward sloping
bell shaped
15
Revenue is higher at the lower price demand is
elastic
inelastic
unit elastic
supply and demand elastic
16
The supply curve is
bell shaped
upward sloping
downward sloping
u shaped
17
Total revenue is determined by
dividing the product by its price
price multiplied by the quantity
price divided by demand
measuring the elasticity of the product
18
How does a demand curve respond to an increase in demand?
the curve shifts right
there is no change to the curve
the curve shifts left
there is movement along the curve
19
In the Law of Demand, "ceteris paribus" assumes that
Other factors will influence the decision to purchase
Price is the only factor infuencing purchasing decisions
Gender, religion, and social status must be considered
Factors other than price influence purachsing decisions
20
Which would change quantity demanded?
consumer tastes
number of consumers
Price
desire, willingness to buy, ability
21
All of the following can cause an increase in supply EXCEPT
fewer sellers in the marketplace
an increase in productivity
an increase in subsidies
decrease in cost of inputs
22
Price ceilings that are artificially low are likely to create
a shortage
a price floor
a surplus
an equilibrium
23
When each In-and-Out Burger after the 1st is incremently less satifsying
Diminishing Marginal Utility
Equilbirium Price
Law of Demand
Law of Supply
24
A consumer has utility when
Marginal Utility is greater or equal to Marginal Cost
Marginal Cost is less than 1
Marginal Cost is greater or equal to Marginal Utility
Marginal utility is greater or equal to 1
25
What component(s) must be in place for demand to occur?
ability
all choices are correct
willingness to buy
desire

Unit 3 Microeconomics Review Flashcards | StudBud