chapter 8 - how firms make decisions
... salary foregone: investment income foregone: rent foregone: total implicit costs: c. Congratulations are not in order since ...
... salary foregone: investment income foregone: rent foregone: total implicit costs: c. Congratulations are not in order since ...
Elasticity of Demand
... means that people are relatively unresponsive to price changes (remember salt). An important relationship exists between the elasticity of demand for a good and the amount of money consumers want to spend on it at different prices. Spending is price times quantity, p times Q. In general, a decrease ...
... means that people are relatively unresponsive to price changes (remember salt). An important relationship exists between the elasticity of demand for a good and the amount of money consumers want to spend on it at different prices. Spending is price times quantity, p times Q. In general, a decrease ...
chapt 4 notes-supply and demand
... Summary • The demand curve shows how the quantity of a good depends upon the price. • According to the law of demand, as the price of a good falls, the quantity demanded rises. Therefore, the demand curve slopes downward. • In addition to price, other determinants of how much consumers want to buy ...
... Summary • The demand curve shows how the quantity of a good depends upon the price. • According to the law of demand, as the price of a good falls, the quantity demanded rises. Therefore, the demand curve slopes downward. • In addition to price, other determinants of how much consumers want to buy ...
ECONOMICS - Study of how people respond to constraints in ways
... order for us to learn as much as possible, we would all receive an A.” Do you think “grades cause competition?” How would you predict the students reacted to the changed constraints in their art history class? Scarcity implies choice. Choice implies cost. The ECONOMIC COST of an action (decision, ch ...
... order for us to learn as much as possible, we would all receive an A.” Do you think “grades cause competition?” How would you predict the students reacted to the changed constraints in their art history class? Scarcity implies choice. Choice implies cost. The ECONOMIC COST of an action (decision, ch ...
Consumer-and
... • Consumer surplus is the difference between what consumers are willing to pay for a good or service (indicated by the position of the demand curve) and what they actually pay (the market price). • So if the selling price was £10 and before I looked at the price I was willing to pay £15. My consumer ...
... • Consumer surplus is the difference between what consumers are willing to pay for a good or service (indicated by the position of the demand curve) and what they actually pay (the market price). • So if the selling price was £10 and before I looked at the price I was willing to pay £15. My consumer ...
supply
... Summary • The demand curve shows how the quantity of a good depends upon the price. • According to the law of demand, as the price of a good falls, the quantity demanded rises. Therefore, the demand curve slopes downward. • In addition to price, other determinants of how much consumers want to buy ...
... Summary • The demand curve shows how the quantity of a good depends upon the price. • According to the law of demand, as the price of a good falls, the quantity demanded rises. Therefore, the demand curve slopes downward. • In addition to price, other determinants of how much consumers want to buy ...
Demand: What We Are Willing and Able to Buy at Various Prices
... The income effect. Because of scarcity, people’s incomes are limited. They have only so much money to spend. If the price of a good or service increases, they will not be able to continue to buy the same quantity as they did at the original price. The substitution effect. Sometimes two different goo ...
... The income effect. Because of scarcity, people’s incomes are limited. They have only so much money to spend. If the price of a good or service increases, they will not be able to continue to buy the same quantity as they did at the original price. The substitution effect. Sometimes two different goo ...
Elasticity and Its Applications
... • Elasticity of y w.r.t. to x is the percentage change in y divided by the percentage change in x, ceteris paribus ...
... • Elasticity of y w.r.t. to x is the percentage change in y divided by the percentage change in x, ceteris paribus ...
Microeconomics - Testbank 1 (Hubbard/O`Brien)
... A by producing their quota and selling it at the cartel ) price. B by producing more than their quota and selling at a price ) lower than the cartel's. C by producing less than their quota and selling at a price ) higher than the cartel's. D by producing less than their quota and selling at a price ...
... A by producing their quota and selling it at the cartel ) price. B by producing more than their quota and selling at a price ) lower than the cartel's. C by producing less than their quota and selling at a price ) higher than the cartel's. D by producing less than their quota and selling at a price ...
PowerPoint
... What gets determined on markets • Markets work to determine two basic economic outcomes: the price at which a good or service is exchanged and the quantity of it that will be bought and sold. • Alternative ways to do this? ...
... What gets determined on markets • Markets work to determine two basic economic outcomes: the price at which a good or service is exchanged and the quantity of it that will be bought and sold. • Alternative ways to do this? ...
How to Calculate Consumer and Producer Surplus from a Graph:
... Producer surplus is the area above the supply curve and below equilibrium price. Again, if there are no government interventions, this area will be a triangle. We’ve shaded it pink in the above figure. Again, use the formula for the area of a triangle is ½ base times height so producer surplus is ½ ...
... Producer surplus is the area above the supply curve and below equilibrium price. Again, if there are no government interventions, this area will be a triangle. We’ve shaded it pink in the above figure. Again, use the formula for the area of a triangle is ½ base times height so producer surplus is ½ ...
Economics for Today 2nd edition Irvin B. Tucker
... workers from 100 to 101 would cause output to rise from 500 to 510 dolls per day. Troll should hire the 101st worker only when the wage is a. $100 or less per day. b. more than $100 per day. c. $5.10 or less per day. d. none of the above. A. Under perfect competition, the firm hires workers until th ...
... workers from 100 to 101 would cause output to rise from 500 to 510 dolls per day. Troll should hire the 101st worker only when the wage is a. $100 or less per day. b. more than $100 per day. c. $5.10 or less per day. d. none of the above. A. Under perfect competition, the firm hires workers until th ...
Lovers of classical music persuade Congress to impose a price
... a. Should they impose this tax on producers or consumers? Explain carefully using a supply-anddemand diagram. b. If the demand for gasoline were more elastic, would this tax be more effective or less effective in reducing the quantity of gasoline consumed? Explain with both words and a diagram. c. A ...
... a. Should they impose this tax on producers or consumers? Explain carefully using a supply-anddemand diagram. b. If the demand for gasoline were more elastic, would this tax be more effective or less effective in reducing the quantity of gasoline consumed? Explain with both words and a diagram. c. A ...
The Markets for the Factors of Production
... certain product or service or otherwise on a password-protected website for classroom use. ...
... certain product or service or otherwise on a password-protected website for classroom use. ...
Final Review Session
... A cartel’s potential monopoly power is its ability to raise price above competitive levels, assuming that the cartel members can agree on and adhere to production cutbacks. A cartel’s actual monopoly power depends, in addition, on the willingness of the members to agree on and adhere to those cutbac ...
... A cartel’s potential monopoly power is its ability to raise price above competitive levels, assuming that the cartel members can agree on and adhere to production cutbacks. A cartel’s actual monopoly power depends, in addition, on the willingness of the members to agree on and adhere to those cutbac ...
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.