Question

1.) The law of demand arises from A. every consumer analyzing the different choices they have and deciding what to buy. B. the law of supply. C. the law of market equilibrium. D. every producer analyzing the different choices they have and deciding what to produce. 2.) Which of the following is correct? A. Marginal utility from espresso is equal to the sum of the total utility after each espresso. B. Total utility from espresso is equal to the sum of the marginal utilities of each espresso. C. Marginal utility from espresso is equal to total utility from espresso divided by the number of espressos. D. Total utility from espresso is equal to the marginal utility of the last espresso. 3.) Your income is: A. essentially a random variable from the perspective of economists. B. determined both by factors under your control and factors not under your control. C. determined entirely by factors not under your control. D. determined entirely by factors under your control. 4.) Quantity demanded in a market increases when price falls because: A sellers expect more customers, so they produce more units of output. B. for some consumers, the decrease in price makes additional units of a good worth C. when the price of a good falls, some consumers believe it is because the quality of the D. as the price of a good falls, its marginal utility rises, which encourages more people to buying. good has fallen. buy it.

Answer 1

1) A) The law of demand says that all other things being equal, as the price of a good increases , quantity demanded decreases; conversely, as the price of a good decreases, quantity demanded increases . Law of demand always comes from consumes end and law of supply comes from producers end.

2) B) Total utility is the total satisfaction gained from consuming a given total quantity of a good or service, while marginal utility is the satisfaction gained from consuming another quantity of a good or service. So total utility from espresso is equal to the sum of the marginal utilities of each espresso.

3) D) determind entirely by factors under your control.

4) D) Law of demand says that if price increases,demand will decreases and vice versa. In this case price falls so quantity demand increases. If companies want to increase the demand for a product , they must lower the price to encourage more people to buy it.