Microeconomics > QUESTIONS & ANSWERS > Sophia Micro Unit 2 Milestone Questions and Answers Already Graded A (All)
Sophia Micro Unit 2 Milestone Questions and Answers Already Graded A
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You passed this Milestone 17 questions were answered correctly. 3 questions were answered incorrectly. 1 Laura was in charge of purchasing food for the next book club meeting. She usually ordered ... sandwiches from the nearby deli, but the price of sandwiches had increased. One option for food was ordering pizza, which was $3 less than a sandwich. However, because the price of sandwiches had gone up, Laura could afford fewer sandwiches and pizza than previous meetings. The reduction in Laura's ability to purchase both sandwiches and pizza due to the increase of price in sandwiches is known in economic terms as ________. a budget constraint a change in income the income effect the substitution effect CONCEPT Budget Constraints: Change in Price 2 Which of the following is true if two indifferences curves cross each other on a preference map? 8/15/2020 Sophia :: Welcome https://snhu.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5728452 2/12 The curves would represent two different individuals. If the curves are from the same rational individual, then they do not violate the assumptions of consumer choice theory. The curves are an example of consistent preferences. The curves are from the same rational individual. CONCEPT Consumer Choice Theory 3 Which statement below is true about the $75 Peter and his wife occasionally spend for two meals and drinks at a Korean barbecue restaurant since Peter was promoted, if the income elasticity for the expense is 2? It is a complement. It is a substitute. It is a luxury good. It is an inferior good. CONCEPT Income Elasticity 4 Ryan greatly preferred oranges during long football practices. His teammates often joked that Ryan would pay 10 times the usual amount to have his oranges rather than eat other fruits, and they always knew when the price had jumped too much by the days when Ryan showed up with cheaper bananas instead. What type of elasticity can be used to describe the oranges that Ryan eats during practice? Relatively elastic 8/15/2020 Sophia :: Welcome https://snhu.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5728452 3/12 Relatively inelastic Perfectly elastic Perfectly inelastic CONCEPT Own-Price Elasticity 5 This graph depicts Laura's budget for airline flights and road trips. What is the most likely cause of the change in her budget line? Road trips got more expensive. Road trips got less expensive. Airline flights got less expensive. Airline flights got more expensive. CONCEPT 8/15/2020 Sophia :: Welcome https://snhu.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/5728452 4/12 Budget Constraints: Change in Price 6 Select the cross-price elasticity amount below that is categorized as a substitute. -1.2 -0.23 0.71 0 CONCEPT Cross-Price Elasticity 7 Which of the following is an example of own-price elasticity? The change in quantity demanded after the price of a 32” television decreased by $70 The change in demand for inferior goods after a series of lay-offs in a small town The change in quantity of steaks purchased after the price of seafood increased at a local market The change in quantity of canoes demanded when the price of kayaks changed CONCEPT Own-Price Elasticity 8 When Sam's Sandwiches were priced at $6, he sold 70 each day during l [Show More]
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