MBAE 6865 Chapter 6 Quiz 100% Complete Questions and Answers

Middle Tennessee State University MBAE 6865 Chapter 6 Quiz 100% Complete Questions and Answers CHAPTER 6 Quiz Note: It is recommended that you save your response as you complete each question. Question 1 (1 point) The demand for a product is more inelastic Question 1 options: When it has many close substitutes In the long-run When it has many complements None of the above Save Question 2 (1 point) What is consumer surplus? Question 2 options: The maximum willingness to pay for a unit of a product The price that an individual pays in equilibrium for a product The difference between how much an individual is willing to pay for a product and how much he ends up paying How many units are traded in equilibrium Save Question 3 (1 point) As the price of dvds increases from $3 to $5, the quantity demanded falls from 220,000 to 180,000. The price elasticity of demand for dvds is: Question 3 options: -0.40 -0.33 -3.00 -2.50 Save Question 4 (1 point) If the current margin is greater than the desired margin, the firm should Question 4 options: Increase price Decrease price Not change the price Marginal revenue and marginal cost are both zero Save Question 5 (1 point) An rational, optimizing, self interested consumer would consume up to the point where Question 5 options: the consumer surplus from the last unit is positive the consumer surplus from the last unit is negative the consumer surplus from the last unit is zero none of the above Save Question 6 (1 point) The first law of demand states that Question 6 options: the quantity demanded increases as price falls the quantity demanded decreases as price falls the quantity demanded increases as price increases none of the above Save Question 7 (1 point) Which of the following is false? Question 7 options: Products with more close substitutes have more elastic demand The demand for any individual brand is less elastic than industry aggregate demand Products with many complements have less elastic demand In the long run, demand curves become more elastic Save Question 8 (1 point) If potatoes are inferior goods, which of the following will increase the demand for potatoes? Question 8 options: Increase in the price of a complement Decrease in income Decrease in the price of a substitute Increase in income..................................continues