Sophia: Microeconomics - Unit 2 Questions and Answers 100% Pass

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Sophia: Microeconomics - Unit 2 Questions and Answers 100% Pass C1: Juan is able to list out the pros and cons of each possible bundle based on his personal preferences to help him decide which is ... ultimately the best bundle. Which of the following economic principles is Juan exhibiting? ✔✔Completedness M1: Which description below describes an indifference curve? ✔✔A curve on a consumer choice graph that indicates different combinations of goods that are equally appealing to the customer M2: Using the graph shown, determine which statement is FALSE. ✔✔A is the optimal choice M3: According to the conditions of consumer choice theory which of the following options shows what is being violated in this indifference curve? ✔✔Non-satiation & Transitivity M4: Perfectly inelastic demand for a good exists when __________. ✔✔Consumers will purchase the same amount of the good, regardless of price M5: When the price of salad was $5, a cafeteria sold 50 packets of salad dressing a day at $0.50 per packet. When they raised the price of salad to $7 but kept the dressing at the same price, they sold only 25 packets of dressing per day. This graph shows the elasticity of demand for salad and dressing. Using the mid-point formula, the cross-price elasticity is __________ and the goods are __________. ✔✔-2, complements M6: What does point D on this graph represent? ✔✔A choice that would result in income left over M7: Last month, Robert's income was $1,000, and he went to the movies twice. This month, Robert's income increased to $2,000, and he went to the movies five times. Determine the income elasticity using the midpoint formula. ✔✔1.28 M8: 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 ordering 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 __________. ✔✔The income effect M9: Which of the following is true if two indifferences curves cross each other on a preference map? ✔✔The curves would represent two differences individuals M10: Select the cross-price elasticity amount below that is categorized as a substitute. ✔✔0.71 M11: On a popular internet deals site, consumers purchased 1,000 weekend getaway packages when the price was $300. After the price increased to $400, consumers purchased 600 packages. This graph shows the elasticity of demand for the weekend getaway package. Using the midpoint formula, what is the own-price elasticity of the weekend getaway package? ✔✔-1.75 M12: Which of the following corresponds to an increase in income? ✔✔The budget constraint will make a parallel shift outward. M13: Which of the following describes what will happen to Peter's budget constraint on his annual trip to the amusement park when the price of game tokens remains the same as last year but the price of ride tickets decreases? ✔✔The budget constraint will pivot out along the axis with the ride tickets M14: The idea that a consumer must be able to evaluate all of the choices offered fulfills the assumptions of which of the following, related to preference behavior? ✔✔Completedness M15: 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 luxury good M16: 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 M17: Which of the following is an example of the law of diminishing returns? ✔✔The rate of utility gained decreases each additional hour that isabella stays up to study, because her study provides less benefit to her as she starts to get tired. M18: Which of the following statements is true of perfectly elastic demand? ✔✔Not buying a good at all anymore when the price goes up a litte. M19: When the price of surfboards goes down, demand for both surfboards and wetsuits increases, meaning that these two goods are which of the following, based on their elasticity? ✔✔Complement goods M20: Determine which statement below applies when income goes down. ✔✔The indifference curve shifts downward and to the left [Show More]

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