5 Written questions
5 Matching questions
- Because of "mental accounting:"
- The demand for autos is likely to be:
- Allocative efficiency is achieved when the production of a good occurs where:
- For a linear demand curve:
- If a firm can sell 3,000 units of product A at $10 per unit and 5,000 at $8, then:
- a people isolate purchases and sometimes make irrational decisions.
- b less price elastic than the demand for Honda Accords.
- c P = MC.
- d the price elasticity of demand is 2.25.
- e demand is elastic at high prices.
5 Multiple choice questions
- Alex's behavior is consistent with the endowment effect.
- increases the amount of health care consumed by reducing the price of additional units of care.
- economic profits earned by firms already in the industry.
- change from being monopolistic to being competitive.
5 True/False questions
The demand for a necessity whose cost is a small portion of one's total income is: → relatively price inelastic.
Anchoring → can influence decision-making with irrelevant information.
If the demand for farm products is price inelastic, a good harvest will cause farm revenues to: → decrease
Under what conditions would an increase in demand lead to a lower long-run equilibrium price? → The firms in the market are part of a decreasing-cost industry.
The price elasticity of demand coefficient measures: → buyer responsiveness to price changes.