Reference no: EM133495430

Question

1. If a coffee shop experiences an increase in the price of the coffee beans they purchase, they will be able to pass on that cost to their customers in terms of higher prices without hurting sales if:

The demand curve is elastic
The demand curve is inelastic
The demand curve is unit elastic
The demand curve is horizontal

2. Imposing a price ceiling on interest rates will likely:

hurt all lenders
reduce the supply of capital
hurt some borrowers
Increase the demand for capital

3. The law of diminishing marginal utility is that, in general,

the more you consume, the less your utility.
utility always diminishes after the first unit is consumed.
people overspend on items that they enjoy.
the consumption of the first unit of any commodity adds more to total utility than the consumption of subsequent units.

4. For any consumer, the marginal benefit of a slice of pizza is

always more for the first slice than a second.
the difference between the value of the slice to the consumer and the price of the slice.
the total amount that the consumer is willing to pay for a whole pizza, divided by the number of slices
the maximum amount that the consumer is willing to pay for the slice.

5. In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:

the labor market and firms
voters and governments
wholesalers and retailers
buyers and sellers.

6. The demand schedule for a good

indicates the quantity of the good that people will buy today.
indicates the quantities that suppliers should try to sell.
indicates the quantities that will be purchased at different prices.
is determined primarily by the cost of producing the good.

7. If the cross-price elasticity between two good is positive, we can infer that the goods are____

substitutes
complements
necessities
luxuries