MGCR 293- Final Exam Guide - Comprehensive Notes for the exam ( 22 pages long!)

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Q = 30: what is the price elasticity of demand if price equals (dq/dp ) (p /q) ( /50) (500/30) Multiple choice questions: the demand curve"s usual slope implies that consumers buy less as the price of a good is increased, the price elasticity of demand can be interpreted as the percentage change in the quantity demanded divided by the percentage change in the good"s price, along a demand curve with unitary elasticity everywhere, total revenue remains constant as output increases, the demand for personal computers has been estimated to be q = 500,000 700p + 200i . Consumer behaviour: consumer preferences, to describe how people prefer one good to another, budget constraints. What combination of goods will consumers buy to maximize their satisfaction. Theory of consumer behavior: preferences can be compared and rank-ordered, ex: for any market basket you may prefer a certain good to another, or be indiferent.