Question 1) Define utility and marginal utility?
Question 2) What is the price elasticity of demand?
Question 3) Relate price elasticity to changes in total revenue with a price increase?
Question 4) List and discuss the determinants of price elasticity.
Question 5) How do normal and inferior goods differ?
Question 6) Define technological (or production) efficiency?
Question 7) Differentiate between fixed costs and variable costs?
Question 8) Differentiate between explicit and implicit costs?
Shiller text The economy today isbn 0-07-297911-9 - 10th edition
Question 9) If you owned a movie theater, would you want the demand for movies to be elastic or inelastic?
Question 10) NPD INTELECT Market Tracking is a leading provider of sales tracking services for the consumer electronics, home appliance, information technology and imaging industries. Use the following data to answer the questions below.
Sales and Price data for DVD players
Price Sales
1998 $504 697,432 units
2001 $192 4,257,913 units
a. Assuming nothing else changed during the time period of the data except product price, use the data provided in the press release to calculate the price elasticity of demand for DVD players between 1998 and 2001.
b. Interpret the value that you calculated for part 'a'.
Question 11: Suppose all your friends offered to help wash your car.
Would marginal physical product decline as more friends helped? Why or why not?