elasticity of demand
... changes in price Where % change in demand is greater than % change in price – elastic Where % change in demand is less than % change in price - inelastic ...
... changes in price Where % change in demand is greater than % change in price – elastic Where % change in demand is less than % change in price - inelastic ...
37 KB IB Exam questions
... 11. The nature of monopoly and the causes of monopolization. 12. Perfect price discrimination. Explain what it is and provide some examples of perfect or imperfect price discrimination. 13. CPI as the measure of inflation. Explain the definition and provide some examples of situations where official ...
... 11. The nature of monopoly and the causes of monopolization. 12. Perfect price discrimination. Explain what it is and provide some examples of perfect or imperfect price discrimination. 13. CPI as the measure of inflation. Explain the definition and provide some examples of situations where official ...
CHAPTER FOUR
... d) Each pays $10 (i.e. 50% each). (Price to the consumer has gone up by $10; amount received by producer has gone down $10) 53A. a) $7.50 and 640 (where the quantity supplied and demanded is equal in both markets) b) $4 800 ($7.50 x 640) c) They would be happier in Market 1. d) The total revenue of ...
... d) Each pays $10 (i.e. 50% each). (Price to the consumer has gone up by $10; amount received by producer has gone down $10) 53A. a) $7.50 and 640 (where the quantity supplied and demanded is equal in both markets) b) $4 800 ($7.50 x 640) c) They would be happier in Market 1. d) The total revenue of ...
Principles of Macroeconomics, Case/Fair/Oster, 10e
... When supply and demand interact freely, competitive markets produce what people want at least cost, that is, they are efficient. There are a number of naturally occurring sources of market failure. Monopoly power gives firms the incentive to underproduce and overprice, taxes and subsidies may distor ...
... When supply and demand interact freely, competitive markets produce what people want at least cost, that is, they are efficient. There are a number of naturally occurring sources of market failure. Monopoly power gives firms the incentive to underproduce and overprice, taxes and subsidies may distor ...
MonopolyDeadWgt
... Panel (a) shows a monopolist that charges the same price to all customers. Total surplus in this market equals the sum of profit (producer surplus) and consumer surplus. Panel (b) shows a monopolist that can perfectly price discriminate. Because consumer surplus equals zero, total surplus now equals ...
... Panel (a) shows a monopolist that charges the same price to all customers. Total surplus in this market equals the sum of profit (producer surplus) and consumer surplus. Panel (b) shows a monopolist that can perfectly price discriminate. Because consumer surplus equals zero, total surplus now equals ...
Document
... B) change their consumption plans when the price of a good changes. C) change their production plans when the price of a good changes. D) increase their quantity demanded when the price of a good increases. E) decrease their quantity demanded when the price of a good decreases. ...
... B) change their consumption plans when the price of a good changes. C) change their production plans when the price of a good changes. D) increase their quantity demanded when the price of a good increases. E) decrease their quantity demanded when the price of a good decreases. ...
Review Chapters 4 and 5
... 34) If the cross elasticity of demand between Jeep Cherokees and Chevy Lumina Vans is 1.55, then the two vehicles are not substitutes in the eyes of car buyers. 35) Although the efficient quantity to produce of any good is located where marginal benefit and marginal cost are equal, there will usuall ...
... 34) If the cross elasticity of demand between Jeep Cherokees and Chevy Lumina Vans is 1.55, then the two vehicles are not substitutes in the eyes of car buyers. 35) Although the efficient quantity to produce of any good is located where marginal benefit and marginal cost are equal, there will usuall ...
File
... those who use it disagree about how to interpret it. Needless to say, macroeconomy is very complicated and there are many factors that influence it. These factors are analyzed with various economic indicators that tell us about the overall health of the economy. Macroeconomists try to forecast econo ...
... those who use it disagree about how to interpret it. Needless to say, macroeconomy is very complicated and there are many factors that influence it. These factors are analyzed with various economic indicators that tell us about the overall health of the economy. Macroeconomists try to forecast econo ...
The allocation of resources in a market economy is described by
... (A) In the long run, there are constant returns to scale. (B) In the long run, there are increasing returns to scale. (C) In the short run, the marginal product of capital is constant. (D) In the short run, the marginal product of labor is constant. (E) In the short run, the law of diminishing margi ...
... (A) In the long run, there are constant returns to scale. (B) In the long run, there are increasing returns to scale. (C) In the short run, the marginal product of capital is constant. (D) In the short run, the marginal product of labor is constant. (E) In the short run, the law of diminishing margi ...
Chapters1through4-Answers
... budget is to be balanced, it should be done over the business cycle rather than yearly" and "9. The government should restructure the welfare system along the lines of a 'negative income tax.'" Both are suggestions of changes that should be made, rather than statements of fact, so they are clearly n ...
... budget is to be balanced, it should be done over the business cycle rather than yearly" and "9. The government should restructure the welfare system along the lines of a 'negative income tax.'" Both are suggestions of changes that should be made, rather than statements of fact, so they are clearly n ...
mcq2
... 22. If a firm's production function is Leontief and the wage rate goes up a) the firm must use more labor in order to minimize the cost of producing a given level of output. b) the firm must use more capital in order to minimize the cost of producing a given level of output. c) the firm must use les ...
... 22. If a firm's production function is Leontief and the wage rate goes up a) the firm must use more labor in order to minimize the cost of producing a given level of output. b) the firm must use more capital in order to minimize the cost of producing a given level of output. c) the firm must use les ...
Chapter 2 Online Appendix:
... as a function of price alone, although changes in other factors can cause the supply curve to shift. Here, consider an “expanded” supply function where quantity supplied is a function not only of a good’s own price but also of suppliers’ costs of production. As an example, let’s consider the case of ...
... as a function of price alone, although changes in other factors can cause the supply curve to shift. Here, consider an “expanded” supply function where quantity supplied is a function not only of a good’s own price but also of suppliers’ costs of production. As an example, let’s consider the case of ...
Lecture 5
... (i.e., an increase or decrease in Y) involves a parallel shift of the feasible consumption set outward or inward from the origin. Since this shift preserves the price ratio (p1/p2), it typically has no effect on the consumer’s MRS (U1/U2) unless the chosen bundle is ...
... (i.e., an increase or decrease in Y) involves a parallel shift of the feasible consumption set outward or inward from the origin. Since this shift preserves the price ratio (p1/p2), it typically has no effect on the consumer’s MRS (U1/U2) unless the chosen bundle is ...
Chapter 13
... indicates that a price of P0 will be charged when Q0 units of output are sold. In a monopoly industry, economics profits could persist indefinitely due to the existence of barriers to entry. In a monopolistically competitive industry, however, the existence of economic profits results in the entry o ...
... indicates that a price of P0 will be charged when Q0 units of output are sold. In a monopoly industry, economics profits could persist indefinitely due to the existence of barriers to entry. In a monopolistically competitive industry, however, the existence of economic profits results in the entry o ...
Economic equilibrium
In economics, economic equilibrium is a state where economic forces such as supply and demand are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change. For example, in the standard text-book model of perfect competition, equilibrium occurs at the point at which quantity demanded and quantity supplied are equal. Market equilibrium in this case refers to a condition where a market price is established through competition such that the amount of goods or services sought by buyers is equal to the amount of goods or services produced by sellers. This price is often called the competitive price or market clearing price and will tend not to change unless demand or supply changes and the quantity is called ""competitive quantity"" or market clearing quantity.