Which of the following goods is likely to have the lowest price ...

[kshipps]

Which of the following goods is likely to have the lowest price elasticity of demand?
 
  A) Life-saving drugs
  B) Potato chips
  C) Chocolates
  D) Decorative flowers

Question 2

Suppose that you are spending two hours a day studying economics, and your grade is 85 percent. You want a higher grade and decide to study for an extra hour a day. As a result, your grade rises to 90 percent. Your marginal benefit is the
 
  A) 5 point increase in your grade minus the opportunity cost to you of spending the hour studying.
  B) extra hour per day you spend on studying.
  C) 5 point increase in your grade.
  D) three hours per day you spend on studying.

[Brummell1998]

Answer to Question 1

A

Answer to Question 2

C