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Unformatted text preview: positive (implying Guinness is a normal good). The percent increase, x, is found by solving x%/10%=0.8. 7. C) The area under the demand curve to the left of the equilibrium quantity is the sum of the marginal values for the first, second, third, etc, up to the Qth unit purchased. This is the total value of the Q units. 8. E) The three demand ceteris paribus conditions are income, price of related goods, and tastes or anything else that can affect the location of the demand curve. 9. C) Demanders or consumers are concerned about maximizing consumer surplus. 10. C) The price elasticity is 40%/20%= 2.0. 11. D) Solve for x in 1.0=x%/5%....
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- Fall '06