ECN 112 Chapter 18 Lecture Notes
... c. Expected future income. If a household’s expected future income is low, its saving is high. If a household’s expected future income is high, its saving is low. C. Financial Market Equilibrium and the Interest Rate The intersection of the demand for financial capital curve and the supply of financ ...
... c. Expected future income. If a household’s expected future income is low, its saving is high. If a household’s expected future income is high, its saving is low. C. Financial Market Equilibrium and the Interest Rate The intersection of the demand for financial capital curve and the supply of financ ...
Price competition.
... Collusion by Repeated Interaction • Let us say that firms have a discount factor of B. • If each make 18 each period. How much is the present value? • The one period undercutting gains is close to 18. • The other firm can punish under-cutters by causing zero profit from then on. • A firm will not c ...
... Collusion by Repeated Interaction • Let us say that firms have a discount factor of B. • If each make 18 each period. How much is the present value? • The one period undercutting gains is close to 18. • The other firm can punish under-cutters by causing zero profit from then on. • A firm will not c ...
Demand 1 revised
... visits to Disneyland are priced? (For two units of the good or service, you pay less than double what you pay for one unit) ...
... visits to Disneyland are priced? (For two units of the good or service, you pay less than double what you pay for one unit) ...
Substitute and Complementary goods 2.2 Elasticity
... substitute goods. One is substitute producer goods and the other is substitute consumer goods. Substitute producer goods are alternative goods that the seller might supply. eg) If there is a sharp decline in price of grapes due to an excess supply, the suppliers try to reallocate resources by repl ...
... substitute goods. One is substitute producer goods and the other is substitute consumer goods. Substitute producer goods are alternative goods that the seller might supply. eg) If there is a sharp decline in price of grapes due to an excess supply, the suppliers try to reallocate resources by repl ...
Quantity Demanded
... States that producers supply more goods and services when they can sell them at higher prices and fewer goods and services when they must sell them at lower prices Quantity supplied is directly related to the prices that producers can charge for their goods and services ...
... States that producers supply more goods and services when they can sell them at higher prices and fewer goods and services when they must sell them at lower prices Quantity supplied is directly related to the prices that producers can charge for their goods and services ...
a. Calculate the price elasticity of demand when the
... At what range of prices will the firm supply zero output? The firm will find it profitable to produce in the short run as long as price is greater than or equal to average variable cost. If price is less than average variable cost then the firm will be better off shutting down in the short run, as i ...
... At what range of prices will the firm supply zero output? The firm will find it profitable to produce in the short run as long as price is greater than or equal to average variable cost. If price is less than average variable cost then the firm will be better off shutting down in the short run, as i ...
week3-1 - GEOCITIES.ws
... • The supply of a good or service can be defined for an individual firm, or for a group of firms that make up a market or an industry. • The sum of all the quantities of a good or service supplied per period by all the firms selling in the market for that good or service. – As with market demand, ma ...
... • The supply of a good or service can be defined for an individual firm, or for a group of firms that make up a market or an industry. • The sum of all the quantities of a good or service supplied per period by all the firms selling in the market for that good or service. – As with market demand, ma ...
File
... Price ceilings can lead to undesirable outcomes. For the scenario below choose the answer that best describes the undesirable outcome. 1d) Some fans arrive several hours early in order to find parking. ...
... Price ceilings can lead to undesirable outcomes. For the scenario below choose the answer that best describes the undesirable outcome. 1d) Some fans arrive several hours early in order to find parking. ...
Answer - CSUNEcon.com
... Suppose the firm outsourced production to India where labor costs are only $5 per unit. Depict the short and long run effects of outsourcing on your graph. What effect will outsourcing have on the capital/labor ratio? Will the number of jobs in the world, India and the U.S. combined increase of decr ...
... Suppose the firm outsourced production to India where labor costs are only $5 per unit. Depict the short and long run effects of outsourcing on your graph. What effect will outsourcing have on the capital/labor ratio? Will the number of jobs in the world, India and the U.S. combined increase of decr ...
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.