Exam 3: Demand

Use Table: Demand Schedules for Three Cookie Buyers. If the price of cookies is $1, how much consumer surplus will Theo enjoy from eating cookies? ​

Uchenna expects a hurricane to hit his region next week and wants to buy more gasoline today. All else equal, how would this be reflected in a graph of his demand for gasoline?

If eggs and waffles are complements, then when the price of eggs decreases, the quantity demanded of eggs _____, and the demand for waffles _____.

What is measured on the horizontal axis of a demand graph?

Use Table: Demand Schedule for Pairs of Leather Boots. What is the dollar value of Elena's marginal utility of a third pair of boots? ​

Suppose that Eli loves watermelon so much that his marginal utility for watermelon never diminishes; it is constant. What does this imply about Eli's demand curve for watermelon?

If gasoline is a normal good and all else is qual, when average consumer income falls, the demand curve for gasoline will:

Extensive medical research has concluded that using tobacco is harmful to your health. As a result, fewer Americans use tobacco today than they did 40 years ago. Economists would say that this change in _____ decreased the demand for tobacco, all else equal.

The difference between the most that a consumer would be willing to pay for a good and the amount that a consumer actually pays is called:

In response to an increase in income, Stella buys fewer jars of pickles. Based on this statement, we can infer that Stella:

Use Table: Individual Demand Schedules for Pairs of Socks. If the price of a pair of socks falls from $4 to $3, by how much did Niles's consumer surplus change? ​

Use Table: Demand Schedules for Three Cookie Buyers. If these are the only cookie consumers in the market, how will total cookie consumption change if the price falls from $1 to $0.50? ​

If bologna is an inferior good, when average consumer income rises, the demand curve for bologna will _____, all else equal.

Consumers are worried that the economy will soon slip into a recession and incomes will fall. Assuming that gasoline is a normal good, today the demand curve for gasoline will _____, all else equal.

If eggs and sausage are substitutes, then when the price of eggs increases, the quantity demanded of eggs _____, and the demand for sausage _____.

All else equal, the demand for _____ good will decrease when income increases.

Use Table: Individual Demand Schedules for Pairs of Socks. If the price of a pair of socks falls from $4 to $3, by how much did Daphne's consumer surplus change? ​

Suppose that the demand for product Z increases when the price of product W rises. Economists would say that products Z and W are _____ goods.

Use Table: Demand Schedules for Three Cookie Buyers. If the price of cookies is $0, how much consumer surplus will Eliza enjoy from eating cookies? ​

All else equal, when the demand for a good decreases in response to a decrease in the price of another good, these goods must be _____ goods.