Question

If demand for a product is elastic, a 10 percent decrease in the price of the product will result in an increase in the quantity demanded by ________ than 10 percent. If demand for a product is inelastic, a 10 percent decrease in the price of the product will result in an increase in the quantity demanded by ______ than 10 percent.

Be able to calculate marginal utility from total utility. If Mike gets 25 total utils of utility from three sandwiches and the first one gives him 13 utils, and the last one gives him 5 utils, how much does the third one give him? ______________

Answer 1

Answer:

If demand for a product is elastic, a 10 percent decrease in the price of the product will result in an increase in the quantity demanded by more than 10 percent. If demand for a product is inelastic, a 10 percent decrease in the price of the product will result in an increase in the quantity demanded by less than 10 percent.

- When demand is elastic, people's response will be more and they will demand more. And when demand is inelastic changes in price will have very less impact on demand

If Mike gets 25 total utils of utility from three sandwiches and the first one gives him 13 utils, and the last one gives him 5 utils, how much does the third one give him?

Ans is 7 utils from 3rd sandwich

Total utility is 25 out of which first give 13 and last gave 5 utils, thus left utils will be from second sandwich ( 25 - 13 - 5 )