Question :
11) The law of diminishing marginal benefit states that:
A) lower : 1377322
11) The law of diminishing marginal benefit states that:
A) lower levels of consumption give lower level of utility.
B) the demand for a commodity declines as its price increases.
C) the demand for a commodity is more dependent on income than on price.
D) the willingness to pay for an additional unit declines as you consume more of a good.
12) Jenny likes chocolates. One day, a friend offers her a chocolate bar and she is extremely happy on receiving it. As the day progresses, many other people also buy her chocolate. As she gets more and more chocolates, her excitement on receiving each bar is seen to gradually reduce. Which economic principle is reflected in this example?
A) The law of equi-marginal utility
B) Aggregation of demand behavior
C) The law of diminishing marginal benefit
D) The law of increasing willingness to pay
13) Which of the following examples best describes the law of diminishing marginal benefit?
A) If the weather gets cold, the demand for ice cream will fall.
B) With each additional pen Jill buys, her willingness to pay for each pen decreases.
C) Each additional unit of ice cream that John consumes gives him more and more satisfaction.
D) If a seller of notebooks in a perfectly competitive market charges above the market price, his profit decreases.
14) The market demand is the ________ of the individual demand of all the potential buyers.
A) sum
B) product
C) square of the sum
D) square root of the sum
The following table shows the demand schedules of three consumers of wine. Assume that these three buyers constitute the entire market.
PRICE
($/Bottle)
Sandra’s Demand
(Bottles)
David’s Demand
(Bottles)
Mary’s Demand
(Bottles)
$8
2
10
$6
14
15
18
$4
23
24
$2
24
27
28
15) Refer to the table above. If the market price of wine is $8/bottle, and the market demand for wine is 19 bottles, David’s consumption of wine is:
A) 4 bottles.
B) 7 bottles.
C) 9 bottles.
D) 12 bottles.
16) Refer to the table above. If the market price of wine is $4/bottle, and the market demand for wine is 65 bottles, Sandra’s demand for wine is:
A) 18 bottles.
B) 40 bottles.
C) 47 bottles.
D) 111 bottles.
The following figure shows the demand curves for pens for two consumers.
17) Refer to the figure above. Assuming that the market consists of only these two consumers, what is the market demand for pens when price is $4?
A) 15 units
B) 25 units
C) 40 units
D) 65 units
The following table shows the demand schedules of three consumers of wine. Assume that these three buyers constitute the entire market.
PRICE
($/Unit)
CONSUMER 1 DEMAND
CONSUMER 2 DEMAND
CONSUMER 3 DEMAND
$4
5
10
17
$3
10
20
20
$2
16
26
23
$1
20
31
25
18) Refer to the table above. What is the market demand for wine when the price is $1?
A) 50 units
B) 51 units
C) 76 units
D) 80 units
19) Refer to the table above. What is the market demand for wine when the price is $3?
A) 28 units
B) 35 units
C) 66 units
D) 50 units
20) A change in the quantity demanded of a good is:
A) the outcome of a change in income.
B) represented by a shift to a new demand curve.
C) the outcome of a change in tastes and preferences.
D) represented by a movement along the demand curve.
