ECON 5000(001) Spring 2010
... a) Suppose that you get a popular professional athlete to do a very clever and compelling series of TV commercials promoting your product. (Answer each of the following by writing INCREASE DECREASE NO CHANGE ) Demand for your product will likely _______________ Your profit-maximizing P will likely _ ...
... a) Suppose that you get a popular professional athlete to do a very clever and compelling series of TV commercials promoting your product. (Answer each of the following by writing INCREASE DECREASE NO CHANGE ) Demand for your product will likely _______________ Your profit-maximizing P will likely _ ...
Chapter 3
... When the market P > equilibrium, there will be a surplus. In the figure, a price of $2.50 for energy drinks results in 90 M cans supplied but only 70 M cans demanded, for a surplus of 20 M. As Red Bull, Monster Energy, Rockstar, and the others cut the P to dispose of the surplus, the P will fall to ...
... When the market P > equilibrium, there will be a surplus. In the figure, a price of $2.50 for energy drinks results in 90 M cans supplied but only 70 M cans demanded, for a surplus of 20 M. As Red Bull, Monster Energy, Rockstar, and the others cut the P to dispose of the surplus, the P will fall to ...
Price Controls
... gallons 1000 ∗ (3.5 − 2) in this example. • Furthermore, since output is limited by quantity supplied, it’s less than before the ceiling by 1000 gallons. ...
... gallons 1000 ∗ (3.5 − 2) in this example. • Furthermore, since output is limited by quantity supplied, it’s less than before the ceiling by 1000 gallons. ...
- Mr. Rhone
... Future Expectations and Supply • Future Expectations of Prices- Expectations of higher prices will reduce supply now and increase supply later. Expectations of lower prices will have the opposite effect. 1. Inflation- is the condition that the value of the cash in your pockets decreases as prices r ...
... Future Expectations and Supply • Future Expectations of Prices- Expectations of higher prices will reduce supply now and increase supply later. Expectations of lower prices will have the opposite effect. 1. Inflation- is the condition that the value of the cash in your pockets decreases as prices r ...
Test answers - December 2001
... 20. Marginal cost is greater than average cost. Since the additions to cost are greater than the current average cost, the average cost curve must be rising. The correct answer is (A). 21. To find out how much the firm will produce in the short run, we set P = MC. MC is the derivative of TC. So, dT ...
... 20. Marginal cost is greater than average cost. Since the additions to cost are greater than the current average cost, the average cost curve must be rising. The correct answer is (A). 21. To find out how much the firm will produce in the short run, we set P = MC. MC is the derivative of TC. So, dT ...
The Demand for Resources
... 3. Changes in the prices of other resources • Substitute resources • If the price of farm machinery decreases relative to farm laborers, more machinery would be utilized, decreasing the MRP of farm labor (it would shift left) • Complementary resources • If the price of lumber used to build new house ...
... 3. Changes in the prices of other resources • Substitute resources • If the price of farm machinery decreases relative to farm laborers, more machinery would be utilized, decreasing the MRP of farm labor (it would shift left) • Complementary resources • If the price of lumber used to build new house ...
Lecture20(Ch17)
... Recall results from monopolistic competition model • Product differentiation • Firms face downward sloping demand curve • With more firms in the industry, the demand curve shifts – and gets flatter (a point we did not emphasize earlier), so the price falls – sketch this by hand: ...
... Recall results from monopolistic competition model • Product differentiation • Firms face downward sloping demand curve • With more firms in the industry, the demand curve shifts – and gets flatter (a point we did not emphasize earlier), so the price falls – sketch this by hand: ...
Monopoly Power Point Slides
... Barriers to entry are a characteristic of a particular market that block the entry of new firms in a monopoly market. Economies of scale lead to natural monopoly which is a firm that confronts economies of scale over the entire range of outputs demanded in its industry. Location Sunk costs are expen ...
... Barriers to entry are a characteristic of a particular market that block the entry of new firms in a monopoly market. Economies of scale lead to natural monopoly which is a firm that confronts economies of scale over the entire range of outputs demanded in its industry. Location Sunk costs are expen ...
presentation source
... think: every effort we can make to throw off our subjection, will serve but to demonstrate and confirm it. In words a man may pretend to abjure their empire: but in reality he will remain subject to it all the while. The principle of utility recognizes this subjection, and assumes it for the foundat ...
... think: every effort we can make to throw off our subjection, will serve but to demonstrate and confirm it. In words a man may pretend to abjure their empire: but in reality he will remain subject to it all the while. The principle of utility recognizes this subjection, and assumes it for the foundat ...
Chapter 5
... global system of tradable emission permits for CO2 that would be similar to the system for SO2 discussed earlier in this chapter. ...
... global system of tradable emission permits for CO2 that would be similar to the system for SO2 discussed earlier in this chapter. ...
Chapter 4
... When income is expected to increase in the future, or when credit is easy to get and the cost of borrowing is low, the demand for some goods increases. When income is expected to decrease in the future, or when credit is hard to get and the cost of borrowing is high, the demand for some goods decrea ...
... When income is expected to increase in the future, or when credit is easy to get and the cost of borrowing is low, the demand for some goods increases. When income is expected to decrease in the future, or when credit is hard to get and the cost of borrowing is high, the demand for some goods decrea ...
Computational Game Theory: Nash Equilibrium Brower Fixed Point
... • Suppose the mediator tells the row player to Chicken • From Row’s perspective, the conditional probability that Column was told to Chicken is (1/3) / (1/3 + 1/3) = 1/2 • So the expected utility of Chicken is (1/2)*(8)+ (1/2)*1= 4.5 • But the expected utility of Dare is (1/2)*9 + (1/2)*0 = 4.5 • So ...
... • Suppose the mediator tells the row player to Chicken • From Row’s perspective, the conditional probability that Column was told to Chicken is (1/3) / (1/3 + 1/3) = 1/2 • So the expected utility of Chicken is (1/2)*(8)+ (1/2)*1= 4.5 • But the expected utility of Dare is (1/2)*9 + (1/2)*0 = 4.5 • So ...
chapter 4 class
... proportion of income spent on good or service whether product is a necessity or luxury ...
... proportion of income spent on good or service whether product is a necessity or luxury ...
Slide 1
... • Price ceilings create shortages and taxes do not • Taxes leave people free to choose how much to supply and consume as long as they pay the tax • Shortages may also create black markets ...
... • Price ceilings create shortages and taxes do not • Taxes leave people free to choose how much to supply and consume as long as they pay the tax • Shortages may also create black markets ...
cross-price elasticity of demand
... tends to be large when inputs are readily available and can be shifted into and out of production at a relatively low cost. It tends to be small when inputs are difficult to obtain. • Time: The price elasticity of supply tends to grow larger as producers have more time to respond to a price change. ...
... tends to be large when inputs are readily available and can be shifted into and out of production at a relatively low cost. It tends to be small when inputs are difficult to obtain. • Time: The price elasticity of supply tends to grow larger as producers have more time to respond to a price change. ...
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.