Sophia Macro Unit 2 Milestone 5 star rated

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What does point D on this graph represent? A choice that would result in income left over An optimal choice A choice on the budget constraint An impossible choice given the income CONCEPT 7/4/20... 20 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4476339 2/11 Optimal Choice 2 As the women's soccer coach, Karissa was in charge of choosing and ordering uniforms. Since the knee socks and shin guards had a unique matching logo, Karissa only ordered from one particular company. When she ordered them three years ago, the knee socks were $5 per pair, and the shin guards were $7 per pair. Karissa ordered 15 pairs of knee socks and 15 pairs of shin guards. Now the price of the shin guards hasn't changed, but knee socks were $7 per pair. Karissa decided she would only buy 10 pairs of shin guards this year. Using the mid-point formula, the cross-price elasticity for the shin guards is __________. 1.25 -1.2 2 -0.83 CONCEPT Cross-Price Elasticity 3 Determine which statement below applies when income goes down. Consumer preference for normal goods increases. The indifference curve shifts downward and to the left. The indifference curve shifts to the right. Consumer preference for inferior goods decreases. CONCEPT 7/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4476339 3/11 Budget Constraints: Change in Income 4 Which statement defines a budget constraint? This maximizes the consumer's utility. When the price of one item goes up, the consumer purchases more of a second item. This represents the combinations of two items that spend all of the consumer's money allotted for those items. When the price on one item increases, the consumer purchases less of both items. CONCEPT Budget Constraints: Change in Price 5 Last year, Paula's income was $2,000, and she went to vacation twice. This year, Paula's income increased to $3,000, and she went to vacation five times. Determine the income elasticity using the midpoint formula. 2.14 0.47 1.80 0.33 CONCEPT Income Elasticity 6 Which of the following corresponds to an increase in income? 7/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4476339 4/11 The budget constraint will make a parallel shift outward. The budget constraint will shift outward in a non-parallel fashion. The budget constraint will make a parallel shift inward. The budget constraint will shift inward in a non-parallel fashion. CONCEPT Budget Constraints: Change in Income 7 When the price of surfboards goes down, demand for both surfboards and wetsuits increases, meaning that these two goods are which of the following, based on their elasticity? Complement goods Substitute goods Normal goods Unit elastic CONCEPT Cross-Price Elasticity 8 Perfectly inelastic demand for a good exists when __________. a 50% increase in price will result in a 50% decrease in quantity demanded consumers will purchase the same amount of the good, regardless of price 7/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4476339 5/11 a small increase in price results in a big change in quantity demanded firms will only offer a set amount of a good for sale, regardless of price CONCEPT Defining Elasticity 9 Which description below describes an indifference curve? The curve on a consumer choice graph that indicates how much money the consumer can spend Where the quantities of two items are maximized A curve on a consumer choice graph that indicates different combinations of goods that are all equally appealing to the consumer The highest level of satisfaction that a consumer can attain within certain limit [Show More]

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