Figure 5-1 -Refer to Figure 5-1.Assume the Section of the Demand Curve

question 43

Multiple Choice

Figure 5-1

-Refer to Figure 5-1.Assume the section of the demand curve labeled A corresponds to prices between $8 and $16.Then,when the price changes between $9 and $10,

• A)quantity demanded changes proportionately less than the price.
• B)quantity demanded changes proportionately more than the price.
• C)quantity demanded changes the same amount proportionately as price.
• D)the price elasticity of demand is less than 1.

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Definitions:

Marginal Utility

The incremental utility or enjoyment gained from the consumption of one more unit of a good or service.

Opportunity Cost

Forgoing the chance to gain from other possibilities by selecting one option.

Consumer Behavior

The study of how individuals, groups, and organizations select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.

Marginal Utility

The added value or satisfaction experienced upon consuming an additional unit of a good or service.