Exam 4: Consumer Demand

Suppose the local government decides to reduce traffic congestion on a bridge by imposing a toll.The toll will be most effective if the price elasticity of demand for the bridge is:

With a greater amount of consumption,total utility:

If the price of potato chips rises and the demand for pretzels rises,then potato chips and pretzels are:

The pleasure or satisfaction obtained from goods and services is known as:

The demand is price-elastic when the percentage change in quantity demanded is greater than the percentage change in price for a particular good.

Using the determinants of demand and your own reasoning,classify each of the following products as elastic or inelastic: a)Alaska summer cruise. b)gasoline. c)ketchup.

The difference between total utility and marginal utility is that:

If demand is inelastic,then:

If the price elasticity of demand is 1.8 then a 30 percent decrease in the price of the good will lead to a _______ percent increase in the quantity demanded.

The price elasticity of demand is defined as the:

When income increases,the demand for most products:

On average,consumers spend the largest portion of their income on food.

Ceteris paribus,when the price elasticity of demand is unitary elastic,a decrease in:

Suppose a university raises its tuition by 8 percent and as a result the enrollment of students drops by 4 percent.The price elasticity of demand is closest to:

One HEADLINE article reports that the United States spends more on advertising per person than most other countries.A successful advertising campaign should shift the:

The goal of economic theory is to explain and predict choices.

Price elasticity of demand shows how:

Which of the following is true about American spending habits?

The law of diminishing marginal utility does not apply to goods that a person really enjoys.

Which of the following is not a determinant of demand?