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Title: In consumer equilibrium, which of the following is true? Post by: Kpolizzi02 on Feb 27, 2018 In consumer equilibrium, which of the following is true?
a. The marginal utility from the consumption of each good is the same. b. The marginal utility from the consumption of each good is zero. c. The marginal utility from the consumption of the last dollar's worth of each good is the same. d. The total utility from the consumption of each good is the same. QUESTION 2 If the resource market is perfectly competitive, the marginal factor cost is equal to the price of the resource. a. True b. False Indicate whether the statement is true or false QUESTION 3 If the price elasticity of demand for a product is equal to 4, a 1 percent increase in price of the product will cause the quantity demanded to _____ by _____ percent. a. increase; 0.25 b. decrease; 0.25 c. increase; 4 d. decrease; 25 e. decrease; 4 QUESTION 4 Suppose both goods L and M have a price of 6 . To maximize your utility from spending a given amount of income on the two goods you should: a. consume more each as long as they provide more than 6 units of marginal utility each. b. consume them so that consumption of each good provides the same total utility. c. consume them so that consumption of the last unit each good provides the same marginal utility. d. all of the above. QUESTION 5 If the government sets a minimum wage which is more than the equilibrium wage, the firms tend to demand more labor. a. True b. False Indicate whether the statement is true or false QUESTION 6 The price elasticity of demand for a product is a measure of the: a. extent of competition in the market for the product. b. change in the quantity purchased of the product relative to a change in a consumer's income. c. change in the quantity demanded of the product due to changes in factors other than price. d. degree of consumer responsiveness to changes in the price of the product. e. percentage change in the prices of two related products. QUESTION 7 Stella's marginal utility of the last unit of X consumed is 18 and her marginal utility of the last unit of Y consumed is 12 . What prices for X and Y, respectively, are consistent with Stella being in consumer equilibrium? a. 4 and 6 b. 12 and 18. c. 15 and 15. d. 12 and 8. Title: In consumer equilibrium, which of the following is true? Post by: kheycee on Feb 27, 2018 |