Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 13, Problem 7MCQ
To determine
Choose the correct answer from the following options regarding the paradox of value arises when people ___.
- Prefer to buy cheap goods rather than expensive goods
- Spend more on expensive useless goods than on cheap useful goods
- Buy so much of a useful good that its price falls
- Get the same
marginal utility per dollar from cheap useful goods and useless expensive goods.
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Students have asked these similar questions
Give examples of goods with high utility and high prices, andgoods with low utility and low prices.
4. Describe what is meant by a normal good. Provide a real-life example in your own words.
What is an inferior good? How does a change in income impact the demand for inferior goods?
Indicate whether the statement is True or False, and briefly explain why:
A. Marginal benefit equal to marginal cost is the point where consumers are maximizing
their satisfaction within their budget.
B. The marginal benefit is equal to the marginal utility you obtain from consuming one
extra unit of the good.
C. What matters for consumers when they want to decide to buy one more unit of a good
is how much utility they got from all the units they consumed before.
D. Elasticity can be related to the measure of a percentage change in quantity demanded
divided by the percentage change in the price of a good.
Chapter 13 Solutions
Foundations of Economics (8th Edition)
Ch. 13.A - Prob. 1SPPACh. 13.A - Prob. 2SPPACh. 13.A - Prob. 3SPPACh. 13.A - Prob. 4SPPACh. 13.A - Prob. 5SPPACh. 13.A - Prob. 1IAPACh. 13.A - Prob. 2IAPACh. 13.A - Prob. 3IAPACh. 13.A - Prob. 4IAPACh. 13 - Prob. 1SPPA
Ch. 13 - Prob. 2SPPACh. 13 - Prob. 3SPPACh. 13 - Prob. 4SPPACh. 13 - Prob. 5SPPACh. 13 - Prob. 6SPPACh. 13 - Prob. 7SPPACh. 13 - Prob. 8SPPACh. 13 - Prob. 9SPPACh. 13 - Prob. 10SPPACh. 13 - Prob. 1IAPACh. 13 - Prob. 2IAPACh. 13 - Prob. 3IAPACh. 13 - Prob. 4IAPACh. 13 - Prob. 5IAPACh. 13 - Prob. 6IAPACh. 13 - Prob. 7IAPACh. 13 - Prob. 8IAPACh. 13 - Prob. 9IAPACh. 13 - Prob. 10IAPACh. 13 - Prob. 1MCQCh. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 6MCQCh. 13 - Prob. 7MCQ
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- (9) What determines the utility an individual receives from consuming a good? Select one: a. The individual’s own preferences. b. The demand and supply curves for that good. c. The producers conducting customer feedback surveys of that good and the feedback provided. (10) Denzel bought headphones two months ago, Solo2 Beats by Dre, for $130. He gives them to his little brother and goes online to buy another for himself but they are now $160. What is the percentage change in the headphone’s price? Select one: a. 23% b. 30% c. 21%arrow_forward1. Calculate the marginal utility per dollar for sodas.arrow_forwardwhat are the units of a good? what are the units of b good? what are the units of c good? the total utility of consuming five units of the b good is what utils? the total utility of consuming three units of the a good is what utils?arrow_forward
- 25. What does a negative marginal utility means? Why does it happen? Explain.arrow_forwardGiven the market price of a good, how does a consumer decide as to how many units of that good to buy? Explainarrow_forwardHow does the law of diminishing marginal utility relate to changing income? Select one: a. The marginal benefit of an extra dollar of income rises as income rises. b. The marginal benefit of an extra dollar of income falls as income rises. c. The total utility gained from a small income is higher than the total utility gained from a high income. d. The total utility gained from a high income is higher than the total utility gained from a low income.arrow_forward
- If the price of a good falls, before the amount consumed changes the marginal utility per dollar from that good a. might either increase or decrease depending on whether the good is a substitute or a complement. b. More information is needed to determine the answer. C. increases. d. decreases.arrow_forwardimpacts of marginal utility. Imagine that you are a seller of phones: How can you increase the consumer demand curve by helping increase the marginal utility for consumers? Detail specific steps to take and provide examples.arrow_forwardSuppose that a consumer spends a fixed amount of income per month on the following pairs of goods: a.tortilla chips and salsab.tortilla chips and potato chips. movie tickets and gourmet coffee d.travel by bus and travel by subway If the price of one of the goods increases, explain the effect on the quantity demanded of each of the goods. In each pair, which are likely to complement and which are likely to be substituted?arrow_forward
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