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UNIT 1: Basic Economic Concepts (Two Weeks)
UNIT 1: Basic Economic Concepts (Two Weeks)

Economic Vocabulary
Economic Vocabulary

... services produced within the borders of a country during a period of time – usually a year. People and/or businesses depending on or helping each other – work as partners or teams to get the job ...
Changes in Demand
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Monopolistic Competition
Monopolistic Competition

Chap 16 Monopolistic Competition
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change in the quantity demanded

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Microeconomics I Syllabus Instructor
Microeconomics I Syllabus Instructor

12. Supply Curves of the Firm and Industry in Perfect Competition
12. Supply Curves of the Firm and Industry in Perfect Competition

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... Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved ...
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Demand - Demand is the quantity buyers are willing and able to buy

... Population – An increase in the population will cause an increase in demand. This will cause the demand curve to shift to the right Advertising – Successful promotional campaigns will mean that people will want to buy more of a product at any price and hence an increase in demand Substitutes (Price ...
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Demand - OnCourse
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... of the product at the same price. b. This will result in an entirely new curve. c. The Demand Curve can change for several reasons: i. Consumer Income – as income goes up you can buy more. This will cause the curve to shift to the right. As income goes down the curve will shift to the left. ii. Cons ...
Monopolistic Competition Notes
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... produce at the lowest costs (minimum ATC) but they decide not to. • The gap between the minimum ATC output and the profit maximizing output. • Not the amount underproduced ...
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... price of a cone, and this moves the price toward its equilibrium level. In panel (b), there is a shortage. Because the market price of $1.50 is below the equilibrium price, the quantity demanded (10 cones) exceeds the quantity supplied (4 cones). With too many buyers chasing too few goods, suppliers ...
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91400 Sample Assessment Schedule

... quantity more than Qm and the firm would make marginal losses (MC>MR) on extra output produced. At any output less than or more than Qm, total profits would be less. (f) Detailed explanation that a perfectly competitive firm is a price taker, which means that whatever quantity it produces will recei ...
Economics 1 - Bakersfield College
Economics 1 - Bakersfield College

... 13. Why do supply curves slope up? a. The cost of making additional items is the same as the cost of making previous items, in other words there is constant opportunity cost. b. The cost of making additional items is higher than the cost of making previous items, in other words there increasing oppo ...
Prices, Supply and Demand Directions: Use 3
Prices, Supply and Demand Directions: Use 3

... 3. What is the Income Effect on demand? Give an example when your income increases and another example for when your income decreases. What happens when the number of buyers increases? Decreases? 4. What is the effect on demand when credit is easily available? Why? 5. Explain elasticity of demand in ...
PURE COMPETITION
PURE COMPETITION

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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.
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