The Economic Theory of Regulation
... How do politicians trade off numbers/votes and monetary support? What happens when two organized groups have conflicting interests? ...
... How do politicians trade off numbers/votes and monetary support? What happens when two organized groups have conflicting interests? ...
Chapter 5
... The elasticity is –1.3. The new price of $4.20 represents a 20 percent increase from the initial price of $3.50. Therefore, the percent change in quantity must be –26. If you are currently selling 1,500 burger platters, a 20 percent increase in price is associated with 1,110 platters. ...
... The elasticity is –1.3. The new price of $4.20 represents a 20 percent increase from the initial price of $3.50. Therefore, the percent change in quantity must be –26. If you are currently selling 1,500 burger platters, a 20 percent increase in price is associated with 1,110 platters. ...
Supply
... What is Supply? • Supply is how much a firm is willing to sell at every given price, ceteris paribus • Thus, if all else remains the same and the price of a good goes up, what would you expect the response of a firm to be? – To produce more, since prices are going up, so will profits ...
... What is Supply? • Supply is how much a firm is willing to sell at every given price, ceteris paribus • Thus, if all else remains the same and the price of a good goes up, what would you expect the response of a firm to be? – To produce more, since prices are going up, so will profits ...
Ch. 2 Ppt: Demand and Supply
... resources required to make a product cannot be varied Long run: the production period during which all resource required to make a product can be varied, and businesses may either enter or leave the industry Constant-cost industry: an industry that is not a major user of any single resource Increasi ...
... resources required to make a product cannot be varied Long run: the production period during which all resource required to make a product can be varied, and businesses may either enter or leave the industry Constant-cost industry: an industry that is not a major user of any single resource Increasi ...
Economics in the Headlines
... the willingness and ability of a person to buy a product. Demand can be affected by changes in income, changes in desire for a product, expectations about the economy, and changes in the prices of related products. For example, if a substitute product is offered at a lower price, people will demand ...
... the willingness and ability of a person to buy a product. Demand can be affected by changes in income, changes in desire for a product, expectations about the economy, and changes in the prices of related products. For example, if a substitute product is offered at a lower price, people will demand ...
demand and supply
... 1. Draw a demand and supply diagram. 2. On the diagram explain how disruption and population will shifts the demand and supply curves. 3. You must explain the diagrams by saying, “Initially market equilibrium is at (P0,QO). Subsequently owing to a disruption in supply causing the supply curve to shi ...
... 1. Draw a demand and supply diagram. 2. On the diagram explain how disruption and population will shifts the demand and supply curves. 3. You must explain the diagrams by saying, “Initially market equilibrium is at (P0,QO). Subsequently owing to a disruption in supply causing the supply curve to shi ...
Elasticity • Responsiveness of one variable to a change in another
... If εd = –1, demand is unit elastic. For a 1 per cent change in price, there is a 1 per cent change in quantity demanded. o P = D. o Where revenue is maximised – always midpoint. When marginal cost is 0, revenue is max. If εd < –1, demand is elastic. For a 1 per cent change in price, the change ...
... If εd = –1, demand is unit elastic. For a 1 per cent change in price, there is a 1 per cent change in quantity demanded. o P = D. o Where revenue is maximised – always midpoint. When marginal cost is 0, revenue is max. If εd < –1, demand is elastic. For a 1 per cent change in price, the change ...
Chapter_3_Micro_13e_class_slides
... goods to the relatively cheaper goods Called the substitution effect (2) When the price of one good falls, real consumer income rises so people buy more (it’s like getting a raise) Called the income effect Both of these also cause the demand curve to be downward sloping ...
... goods to the relatively cheaper goods Called the substitution effect (2) When the price of one good falls, real consumer income rises so people buy more (it’s like getting a raise) Called the income effect Both of these also cause the demand curve to be downward sloping ...
Supply 1
... Discuss with your partner the similarities and differences of the two laws. • Law of Demand, an inverse relationship ...
... Discuss with your partner the similarities and differences of the two laws. • Law of Demand, an inverse relationship ...
LECTURE #3: MICROECONOMICS CHAPTER 4
... What happens when there is a change in Supply? An increase in supply moves the supply curve to the right – ϵ price decreases A decrease in supply moves the demand curve to the left – ϵ price increases ...
... What happens when there is a change in Supply? An increase in supply moves the supply curve to the right – ϵ price decreases A decrease in supply moves the demand curve to the left – ϵ price increases ...
Chapter 4 Individual and Market Demand
... Point Elasticity of Demand - For large price changes (e.g. 20%), the value of elasticity will depend upon where the price and quantity lie on the demand curve. - Point elasticity measures elasticity at a point on the demand curve. Problems Using Point Elasticity - We may need to calculate price ...
... Point Elasticity of Demand - For large price changes (e.g. 20%), the value of elasticity will depend upon where the price and quantity lie on the demand curve. - Point elasticity measures elasticity at a point on the demand curve. Problems Using Point Elasticity - We may need to calculate price ...
Practice Questions_Ch6 - U of L Class Index
... 7. Refer to the graph above. Initial market equilibrium is at the intersection of D and S0. When government imposes a per unit tax, supply shifts from S0 to S1. The effect of this tax is to A) raise the price consumers pay from C to B. B) raise the price consumers pay from C to A. C) raise the equil ...
... 7. Refer to the graph above. Initial market equilibrium is at the intersection of D and S0. When government imposes a per unit tax, supply shifts from S0 to S1. The effect of this tax is to A) raise the price consumers pay from C to B. B) raise the price consumers pay from C to A. C) raise the equil ...
Lecture5.MonopolisticCompetition.2006_000
... Given that brands are equally spaced, a new entrant can do no better than to locate exactly half-way between two brands. However, this means that the new entrant will have a market half the size of incumbent firms (L/2 rather than L). That means the demand curve for the incumbent firm will be YE = P ...
... Given that brands are equally spaced, a new entrant can do no better than to locate exactly half-way between two brands. However, this means that the new entrant will have a market half the size of incumbent firms (L/2 rather than L). That means the demand curve for the incumbent firm will be YE = P ...
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.