Answer Expert Verified. Purchasing something that you already have enough of leads to decreasing marginal utility. When a person spends their money purchasing products or services beyond their immediate needs, then they will enjoy the spending power of their money much less.
Which best describes the purpose of a demand schedule?
Explanation: The demand schedule consists of two column that can be used in the study of economics to show the quantity of goods or services demanded at different price levels. The price of the product is usually being placed on the first column in either a descending or ascending order.
Which describes a situation in which a surplus occurs?
The correct answer is D. A surplus occurs when there is more of a good, product, or service than demanded by citizens. In the theater example, there are more seats than people who are willing to pay for them. This shows that the theater will have a surplus of seats, as not all of them will be filled for the show.
Which best describes the purpose of a supply curve?
Answer: The purpose of a supply curve is to graph the relationship between quantity supplied and price charged.
Which type of food do people buy less of as their income rises?
Inexpensive foods like instant noodles, bologna, pizza, hamburger, mass-market beer, frozen dinners, and canned goods are additional examples of inferior goods. As incomes rise, one tends to purchase more expensive, appealing or nutritious foods.
Which describes a situation in which the price of a good would rise scarce natural resources make it more difficult for producers to keep up with demand a new technology allows producers to increase supply very quickly production is increased in order to catch up with a sudden rise in demand?
Answer: Scare natural resources make it more difficult for producers to keep up with demand.
How to calculate marginal benefit in microeconomics exam?
B) can be derived from the production possibilities frontier. C) can be calculated from the marginal benefit of that good or service. D) decreases as more of the good or service is produced. E) None of the above answers are correct. A) marginal benefit to price. B) price to marginal cost. C) total cost to price. D) total cost to total benefit.
Which is greater or less than the quantity supplied?
C) is less than the quantity supplied. D) might be greater than, equal to, or less than the quantity supplied depending on whether the supply curve is upward sloping, horizontal, or vertical. E) None of the above answers is correct because without rent ceilings there is no equilibrium rent.
Which is correct producer surplus or consumer surplus?
13) Producer surplus is the ________ summed over the quantity produced. E) None of the above answers is correct. A) some producer surplus from the sale. B) a loss. C) some negative consumer surplus from the sale. D) no benefit from the sale. E) None of the above answers is correct. A) some producer surplus from the sale.
What is the maximum price a consumer is willing to pay?
The maximum price a consumer is willing to pay for an additional unit is the marginal benefit of that unit. iii. Value is what a consumer receives and price is what a consumer pays. A) will maximize consumer surplus. B) is equal to the deadweight loss if the unit of the good is not produced.
