SCC Econ&201 Exam 1 Essays( Ch. 3,6,7)

SCC Econ&201 Exam 1 Essays( Ch. 3,6,7) - particular...

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  Points Total 1. Suppose the U.S. Congress is considering passing an excise tax that would increase the price of a pack of cigarettes by $1.00. What would be the likely effect of this change on the demand and supply of cigarettes? What is likely to happen to cigarette prices and the quantity consumed if the tax bill is enacted? 2. Explain how each of four different factors can affect the price elasticity of demand. Give an example for each determinant. 3. Columns 1 through 3 in the table below show the marginal utility which a
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Unformatted text preview: particular consumer would get by purchasing various quantities of products A, B, and C. Unit of product (1) Margina l utility, A (2) Margina l utility, B (3) Margina l utility, C First 18 39 12 Second 16 36 10 Third 14 33 9 Fourth 12 30 8 Fifth 10 27 7 Sixth 8 24 5 Seventh 6 21 3 If the prices of A, B, and C are $2, $3, and $1, respectively, and the consumer has $26 to spend on these three products, what combination of the three products should be purchased in order to maximize utility?...
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SCC Econ&201 Exam 1 Essays( Ch. 3,6,7) - particular...

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