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Author Question: If the demand for a product is unit-elastic, a 25 percent increase in its price will result in: a. ... (Read 58 times)

colton

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on: Jun 30, 2018
If the demand for a product is unit-elastic, a 25 percent increase in its price will result in:
 a. a 25 percent change in total revenue.
  b. no change in quantity demanded.
  c. a 1 percent increase in quantity demanded.
  d. a 25 percent decrease in quantity demanded.
  e. a 100 percent change in quantity demanded.

Question 2

In consumer equilibrium:
 a. the average utility from each dollar spent is the same.
 b. total utility cannot be increased by reallocating spending among the goods consumed.
  c. total utility obtained from the consumption of each product is at a maximum.
 d. the marginal utility from the last unit of each good consumed is the same.


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carojassy25

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

b


colton

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Reply #2 on: Jun 30, 2018
Thank you :)


carojassy25

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Reply #3 on: Jun 30, 2018
Happy to help you


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