Bob budgets $12 a week for entertainment. He splits his time between going to the movies and going to the gym. Each movie costs $3 and each session at the gym also costs $3. The total utility from each of these activities is shown in the table below. Bob's utility maximizing point is:
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A. 3 movies; 3 gym workout sessions
B. 4 movies; 2 gym workout sessions
C. 4 movies; 0 gym workout sessions
D. 1 movie; 5 gym workout sessions
Answer: A. 3 movies; 3 gym workout sessions
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A competitive market begins in a situation of long-run equilibrium. Then, there is a decrease in demand. Describe the process that eventually leads to a new long-run equilibrium
When a demand curve is linear:
A. the elasticity is constant at all prices. B. demand is inelastic at low prices. C. demand is elastic at low prices. D. demand is unitary elastic at low prices.
Market demand is determined by all of the following except
A. Expectations about future income. B. Income. C. The number of potential sellers. D. Tastes.
Refer to the information provided in Figure 13.1 below to answer the question that follows.
Figure 13.1Refer to Figure 13.1. Of the following choices, Panel B best represents the demand curve for
A. Samsung televisions. B. insulin. C. an individual producer of soybeans. D. a utility company.