Question

1. In economics Utility is just a term we use to define [ Select ] ["derivations", "good vibes", "wonder", "satisfaction"] derived from a good or service

We assume that people are rational such that they [ Select ] ["don't know what they want", "Never get buyers remorse", "dont' care of consequences", "seek to make themselves better off"]      

Rational behavior doesn't mean [ Select ] ["people take actions with the intent of making themselves better off", "people never make mistakes", "sometimes people make mistakes and have buyers remorse after they take the action"]  

2.

Blanks Billy owns a gym in a nice neighborhood. He was going over his income statements and notices that he is making quite a profit but thinks that he could increase his profit by hiking membership fees. He is somewhat new to the business and had little economic training, but he's not an idiot either. He hikes the monthly membership fee by 10% thinking that he would automatically see an increase of revenue of at least 5%.

A)- Under what condition of the Demand curve would this hike provide an increase in Revenues [ Select ] ["Unit-Elastic Demand Curve", "Elastic Demand Curve", "Inelastic Demand Curve"]      

b)- Suppose he hikes it 10% and 2 months later notices that he has no change in profit. This shows that he has a [ Select ] ["Unit-Elastic Demand Curve", "Elastic Demand Curve", "Inelastic Demand Curve"]      

Answer 1