ch
if a customer's first new car gives him marginal utility of 25 utils what is the most likely marginal utility that a second car would give him?
15 utils
what term do economist use to describe the act of buying?
demand
a drop in income would have the least effect on demand for?
bread
the local grocery announces and upcoming sale on ground beef what economic scenario will likely be the immediate result of this announcement?
a decrease in demand
State the law of demand
everything else being held constant, the lower the price charged for a good or service, the greater the quantity people will demand and vice versa
graphing a set of data that supports william stanley jevon's principle
marginal utility curve
when many people lose their jobs during the depression what usually happens to the demand curves for normal goods?
it shifts left
powdered milk would most likely be an example of which type of good found in the text?
inferior good
Who identified the principles of diminishing marginal utility?
William Stanley Jevans identified the principal of diminishing marginal utility
what four conditions may change the demand for a product?
a change in people incomes, a change in the price of related goods a change in people tastes and preferences and a change in peoples expectations
which of the following is not one of the functions of prices?
A. transmitting information
B. providing incentives
C. redistributing income
D. Increasing utility
increasing utility
at its first spring sale your local plant nursery offers rose bushes for 40% off the regular price the store sells 300 rose bushes twice the usual number for the month what has occurred?
a change in quantity demanded
which of the following reasons is not one of the main reasons for a change in demand?
A. a change in income
B. a change in price of related goods
C. a change in tastes and preferences
D. a change in social status
d. A change in social status
If the market price for a candy bar should be $1.00 but the government, in its desire to decrease candy consumption, requires stores to charge $5.00 per bar, what disruptions may occur in the economy?
Not a lot of people will buy it
which of the following will most likely persuade a dairy farmer to purchase more cows
A.the price of grain
B. the price of milk
C. current real estate markets
D. current interest rates
current real estate markets
the rightward shift of a demand curve indicates
a increase in demand
bacon and eggs best qualify as and example of
complimentary goods
What are the three functions of prices?
Three functions of prices transmit information, provide incentives, and redistribute income.
How do business firms use advertising to shift an individual households demand curves? Is it morally right for them to do so? why or why not?
they try to increase demand by making their product more appealing
which of the following usually comes first?
A.increased production of cocoa
B. increased consumption of chocolate
c. increased manufacture of chocolate
D. increased orders for chocolate
b. increased consumption of chocolate
the leftward shift of a demand curve indicates?
a decrease in demand
what is the typical description of a fad item's demand curve?
shifts right then left.
what is the economic definition of the word demand?
Economics see the word demand as also the act of purchasing
Is a demand curve positively r negatively sloped? Explain using law of demand
A demand curve is negatively sloped because the lower the price, the greater the quantity demanded