QUESTION 13 Marginal utility is defined as the a change in m

QUESTION 13 Marginal utility is defined as the a. change in marginal utility a person derives from the consumption of a good. b. change in total utility a person derives from the consumption of a good divided by the price of that good O C. sum of the amounts of satisfaction a person receives from consuming a good d. change in total utility a person derives from the consumption of a good divided by the value in use of that good e. change in total utility a person derives from the consumption of a good divided by the change in the quantity of the good consumed QUESTION 14 A cost that is incurred when an actual monetary payment is made is a(n) cost. a. explicit O b. implicit O c. expressed o d. positive QUESTION 15 When both supply and demand shift to the left, the a. equilibrium price always falls o b. equilibrium price always rises O c. equilibrium quantity always rises o d. equilibrium quantity always falls e. equilibrium quantity is indeterminate QUESTION 16 As you move left along the demand curve, the price elasticity of demand a. does not change b.becomes more inelastic. O c. becomes infinite o d.moves closer to zero e.becomes more elastic. QUESTION 17 The City Council of Happy Village is thinking about imposing rent controls. If they put rent controls in place, which constituency are they trying to please? O all voters O landlords O all taxpayers O existing tenants

Solution

Ans13) E is the correct option. Change in total utility a person derives from the consumption of a good divided by the change in the quantity of good consumed.

Ans14) A is the correct option option. Explicit cost.

Ans15) D is the correct option. Equilibrium quantity always falls. The change in the equilibrium price is determined by the magnitude of Change of demand and supply.

Ans16) D is the correct option. Moves closer to 0. When we go down the demand curve the price elasticity of demand decreases.

Ans17) existing tenants is the correct option. An effective rent control will keep rents below the competitive market level