Chapter 5 notes - Waterford Union High School
... – When prices rise, firms substitute production of one good for another. – Assuming firms’ costs are constant, a higher price means higher profits. ...
... – When prices rise, firms substitute production of one good for another. – Assuming firms’ costs are constant, a higher price means higher profits. ...
Principles of Economics, Case and Fair,8e
... On occasion, both governments and private firms decide to use some mechanism other than the market system to ration an item for which there is excess demand at the current price. Regardless of the rationale, two things are clear: 1. Attempts to bypass price rationing in the market and to use alterna ...
... On occasion, both governments and private firms decide to use some mechanism other than the market system to ration an item for which there is excess demand at the current price. Regardless of the rationale, two things are clear: 1. Attempts to bypass price rationing in the market and to use alterna ...
Practice Exam 2 Key
... a. The additional utility from consuming one more unit of a product b. The additional product produced from one more unit of an input c. The amount of one good that must be given up to acquire more of another good while holding total utility constant d. The percentage change in the quantity demanded ...
... a. The additional utility from consuming one more unit of a product b. The additional product produced from one more unit of an input c. The amount of one good that must be given up to acquire more of another good while holding total utility constant d. The percentage change in the quantity demanded ...
Ch. 3 Notes
... A list of amounts of a product that a consumer would be willing and able to buy (demand) at different prices over a given time period when all nonprice factors are held constant. ...
... A list of amounts of a product that a consumer would be willing and able to buy (demand) at different prices over a given time period when all nonprice factors are held constant. ...
Chapter 4, Section 3
... Products such as prescription drugs and gas do not have much change in demand even if the price changes. These are products that we need and have to have. ...
... Products such as prescription drugs and gas do not have much change in demand even if the price changes. These are products that we need and have to have. ...
UNIT 1: Basic Economic Concepts (Two Weeks)
... How does scarcity affect decision making? (2) How does comparative advantage illustrate opportunity costs? (2) What is the difference between change in supply/demand and change in quantities supplied/demanded? (3) How do determinants of supply and demand impact price and quantity? (3) What relations ...
... How does scarcity affect decision making? (2) How does comparative advantage illustrate opportunity costs? (2) What is the difference between change in supply/demand and change in quantities supplied/demanded? (3) How do determinants of supply and demand impact price and quantity? (3) What relations ...
ECON 2010-400 Principles of Microeconomics
... reviewing the earlier class material. Asking questions in the class is encouraged, and many times is reciprocated. When supported by a lot of hard work at home, this is an enjoyable class. In each class session, rules of common courtesy are strictly followed. Do not talk to your neighbor when the cl ...
... reviewing the earlier class material. Asking questions in the class is encouraged, and many times is reciprocated. When supported by a lot of hard work at home, this is an enjoyable class. In each class session, rules of common courtesy are strictly followed. Do not talk to your neighbor when the cl ...
PowerPoint File
... and industry output of a good over time. Assume that at C and D all short and long run adjustments have been made. A. What could cause the market price and output to change in the manner depicted below? Depict such a change on your graph. (hint: more than one thing may happen). B. Label points A, B, ...
... and industry output of a good over time. Assume that at C and D all short and long run adjustments have been made. A. What could cause the market price and output to change in the manner depicted below? Depict such a change on your graph. (hint: more than one thing may happen). B. Label points A, B, ...
lecture 13: market structures
... maximized and how much are these profits; how individual firms make their short run supply decisions and how these translate into the long-run industry supply curve. In the short run, a perfectly competitive firm can settle at equilibrium where it is making super normal profits, normal profits, loss ...
... maximized and how much are these profits; how individual firms make their short run supply decisions and how these translate into the long-run industry supply curve. In the short run, a perfectly competitive firm can settle at equilibrium where it is making super normal profits, normal profits, loss ...
Perfect-Competition
... • Homogeneous product – no branding or differentiation • Perfect information – consumers always know what’s on offer for what prices • Freedom of entry & exit – no “barriers to entry” So… firms are price takers. ...
... • Homogeneous product – no branding or differentiation • Perfect information – consumers always know what’s on offer for what prices • Freedom of entry & exit – no “barriers to entry” So… firms are price takers. ...
Sample Exam, May 2015, Section 3
... 3C. (Econ 205A: Holian) In general terms, discuss threats to the internal and external validity of econometric results. Please list up to four threats to internal validity and two threats to external validity, and offer a one-sentence description of each. Finally, name and briefly discuss one econom ...
... 3C. (Econ 205A: Holian) In general terms, discuss threats to the internal and external validity of econometric results. Please list up to four threats to internal validity and two threats to external validity, and offer a one-sentence description of each. Finally, name and briefly discuss one econom ...
Economic Definitions
... when one single firm or a group of firms acting together control the entire market for that good or service and no substitutes are available. This is a situation of pure monopoly. Economists focus more on the degree of monopoly power that exists rather than absolute monopoly power. A market concentr ...
... when one single firm or a group of firms acting together control the entire market for that good or service and no substitutes are available. This is a situation of pure monopoly. Economists focus more on the degree of monopoly power that exists rather than absolute monopoly power. A market concentr ...
National Income and the Price Level in the Short Run
... •In other words, the price level and AE are negatively related to each other. CHANGES IN CONSUMPTION Inside Assets: issued by someone in private sector but held by someone else in private sector. Outside Assets: held by someone in private sector but issued by someone outside that sector. ...
... •In other words, the price level and AE are negatively related to each other. CHANGES IN CONSUMPTION Inside Assets: issued by someone in private sector but held by someone else in private sector. Outside Assets: held by someone in private sector but issued by someone outside that sector. ...
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.