MicroEcon quiz 2b

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