Exam (elaborations)
Econ 323 TAMU Exam 1 - Anderson Questions and Answers
- Course
- Institution
Econ 323 TAMU Exam 1 - Anderson
[Show more]
Content preview
Econ 323 TAMU Exam 1 - AndersonElastic – answer x > 1
Inelastic – answer x < 1
Unit Elastic – answer x = 1
Price Elasticity of Demand - answer% Change in Quantity / % Change in Price
Total Spending Falls – answer Price Increases
AND
Demand is elastic
Total Spending Rises – answer Price Increases
AND
Demand is inelastic
If X and Y are perfect substitutes, which of the following assumptions about indifference
curves is NOT satisfied? - answer Diminishing MRS
Opportunity Cost of consuming one unit of X in terms of how much Y must be given up
is reflected in - answer The slope of the individual's budget constraint
If an individual's indifference curve map does not obey the assumption of a diminishing
MRS, then - answer tangencies of indifference curves to the budget constraint may not
be points of utility maximization
With two goods, if the income effect is in the same direction as the substitution effect,
then the good is - answer normal
X and Y are substitutes if - answer an increase in Px causes more Y to be bought
X and Y are compliments if - answer an increase in Px causes less Y to be bought
If good X is a normal good and it's price rises, then the quantity demanded - answer will
always fall
Which of the following will NOT cause a demand curve to shift position - answer A
doubling of a good's price
If the income elasticity of demand is 0.5, the good is - answer normal
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller jw638729. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80461 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now