Table 24-15 ​

question 23

Multiple Choice

Table 24-15
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The following table shows the prices of good X and good Y for 2013-2015. In addition, assume the basket of goods used to compute the Consumer Price Index consists of 3 units of good X and 4 units of good Y.
​ ​
-Refer to Table 24-15. The inflation rate in 2014 was

• A)​57%.
• B)​63%.
• C)​70%.
• D)​75%.

Understand the relationship between demand curves and revenue in the context of market structures.

Identify and interpret the differences between marginal revenue, total revenue, average revenue, and marginal cost.

Analyze the impact of price changes on revenue in different segments of the demand curve.

Understand the characteristics and implications of operating on different segments of the elasticity of demand.

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Definitions:

Marginal Utility

The variation in pleasure or usefulness a consumer feels from using one more unit of a product or service.

Diminishing Marginal Utility

The principle that as a consumer consumes more of a good or service, the additional satisfaction gained from consuming an additional unit decreases.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to what is observed with normal goods.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction (utility) gained from consuming an additional unit decreases.