Section 2
... Increasing Opportunity Cost 2. You should be able to answer questions about the Production Possibilities Curve and Comparative Advantage. Section 2 1. Definitions: a. Law of Demand b. Law of Supply 2. Know how to distinguish between: a change in quantity supplied or demanded cause : change in pric ...
... Increasing Opportunity Cost 2. You should be able to answer questions about the Production Possibilities Curve and Comparative Advantage. Section 2 1. Definitions: a. Law of Demand b. Law of Supply 2. Know how to distinguish between: a change in quantity supplied or demanded cause : change in pric ...
Test Review Unit 3, Chapters 4, 5, 6
... Test Review Unit 3, Chapters 4, 5, 6 This COMPLETED study guide is worth up to 10 points on your test, ON THE TEST DATE ONLY. This study guide will not be accepted late for any reason. Chapter 4 1. What is the definition of demand? ...
... Test Review Unit 3, Chapters 4, 5, 6 This COMPLETED study guide is worth up to 10 points on your test, ON THE TEST DATE ONLY. This study guide will not be accepted late for any reason. Chapter 4 1. What is the definition of demand? ...
Important Lecture Vocabulary and Concepts
... Origin (of a graph) Slope of a straight (or curved) line Tanget to a curve Y-intercept Ray through the origin, or ray 450 line Production indifference map Chapter 2 Factors of production, or inputs Outputs Gross domestic product (GDP) Open economy Closed economy Recession Transfer payments Progressi ...
... Origin (of a graph) Slope of a straight (or curved) line Tanget to a curve Y-intercept Ray through the origin, or ray 450 line Production indifference map Chapter 2 Factors of production, or inputs Outputs Gross domestic product (GDP) Open economy Closed economy Recession Transfer payments Progressi ...
Negative Externalities Homework
... ABC Plastics is polluting the ground water surrounding it’s factory. The Gov’t decides to tax their product and use the $ to treat the area. Graph the externality including the tax. ...
... ABC Plastics is polluting the ground water surrounding it’s factory. The Gov’t decides to tax their product and use the $ to treat the area. Graph the externality including the tax. ...
Prices and Markets
... Introduction • Prices change all the time • The reason is because of changes in supply and/or demand • This happens in a market • A market is many things, but essentially it is where suppliers and demanders meet ...
... Introduction • Prices change all the time • The reason is because of changes in supply and/or demand • This happens in a market • A market is many things, but essentially it is where suppliers and demanders meet ...
Homework 1 (due Thurs July 5)
... price-taker, what is his supply curve? b) Suppose that if the price for honey is p, consumers are willing to buy 13 − p gallons of honey per month. If the honey industry consists of a total of 10 farmers, what will be the equilibrium price for honey and the total monthly sales? d) Will this be a lon ...
... price-taker, what is his supply curve? b) Suppose that if the price for honey is p, consumers are willing to buy 13 − p gallons of honey per month. If the honey industry consists of a total of 10 farmers, what will be the equilibrium price for honey and the total monthly sales? d) Will this be a lon ...
Changes in Market Equilibrium
... Changes in Market Equilibrium In this lesson, students will identify factors that can shift a market into disequilibrium. Students will be able to identify and/or define the following terms: Disequilibrium Surplus Shortage ...
... Changes in Market Equilibrium In this lesson, students will identify factors that can shift a market into disequilibrium. Students will be able to identify and/or define the following terms: Disequilibrium Surplus Shortage ...
Chapter04
... 2.Translate the following sentence into Japanese Economists use the model of supply and demand to analyze competitive markets. In a competitive market, there are many buyers and sellers, each of whom has little or no influence on the market price. The demand curve shows how the quantity of a good de ...
... 2.Translate the following sentence into Japanese Economists use the model of supply and demand to analyze competitive markets. In a competitive market, there are many buyers and sellers, each of whom has little or no influence on the market price. The demand curve shows how the quantity of a good de ...
Combining Supply and Demand
... If the market price or quantity supplied is anywhere but at the equilibrium price, the market is in a state called disequilibrium. There are two causes for disequilibrium: Excess Demand ...
... If the market price or quantity supplied is anywhere but at the equilibrium price, the market is in a state called disequilibrium. There are two causes for disequilibrium: Excess Demand ...
Chapter 1 Introduction to Managerial Economics
... where: TRt = the firm’s TR in year t TCt = the firm’s TC in year t i = the interest rate and t goes from 1 (next year) to n (the last year in the planning horizon) ...
... where: TRt = the firm’s TR in year t TCt = the firm’s TC in year t i = the interest rate and t goes from 1 (next year) to n (the last year in the planning horizon) ...
06--Comparative Statics
... – Determine effect(s) on demand/supply – Examine incentives of competitors ...
... – Determine effect(s) on demand/supply – Examine incentives of competitors ...
Supply and Demand
... what will happen to market equilibrium price and quantity in the short run. a. Consumers expect that the price of the good will be higher in the future. b. The price of a substitute good rises. c. Consumer incomes fall, and the good is normal. d. Consumer incomes fall, and the good is inferior. e. A ...
... what will happen to market equilibrium price and quantity in the short run. a. Consumers expect that the price of the good will be higher in the future. b. The price of a substitute good rises. c. Consumer incomes fall, and the good is normal. d. Consumer incomes fall, and the good is inferior. e. A ...
Econ 102 Fall 2004 –First Midterm
... Economics – the study of the allocation of scarce resources. Macroeconomics – the study of the aggregate behavior of individual economic agents. Positive Economics – the study of how the economy behaves. Normative Economics – the benchmarking of how the economy should be. Reasons for market failure ...
... Economics – the study of the allocation of scarce resources. Macroeconomics – the study of the aggregate behavior of individual economic agents. Positive Economics – the study of how the economy behaves. Normative Economics – the benchmarking of how the economy should be. Reasons for market failure ...
problem_set_3
... e. In one sentence ONLY, explain what DWL is in this specific case - what is actually lost? f. Calculate the elasticity of demand when the price increases from the equilibrium price found in (a) to $12. Is it elastic or inelastic demand? g. 2. Externalities in Gnomeland a. In Gnomeland, externalitie ...
... e. In one sentence ONLY, explain what DWL is in this specific case - what is actually lost? f. Calculate the elasticity of demand when the price increases from the equilibrium price found in (a) to $12. Is it elastic or inelastic demand? g. 2. Externalities in Gnomeland a. In Gnomeland, externalitie ...
Test 1 Review - WordPress.com
... • If two people are in a room, and one person has a full allocation of clothes… • And the other person a full allocation of food, then… • Trade will occur to a point where both people • Benefit from the interaction • Cannot improve any further without harming the other ...
... • If two people are in a room, and one person has a full allocation of clothes… • And the other person a full allocation of food, then… • Trade will occur to a point where both people • Benefit from the interaction • Cannot improve any further without harming the other ...
ECON 3070-004 Intermediate Microeconomic Theory
... Introduction to General Equilibrium (Without Production) ...
... Introduction to General Equilibrium (Without Production) ...
Problem Set 4 Key
... The supply of Florida oranges has increased, causing their price to increase and the demand for the substitute California oranges to also increase. The supply of Florida oranges has decreased, causing the demand for California oranges to increase and their prices to rise. The demand for Florida oran ...
... The supply of Florida oranges has increased, causing their price to increase and the demand for the substitute California oranges to also increase. The supply of Florida oranges has decreased, causing the demand for California oranges to increase and their prices to rise. The demand for Florida oran ...
Problem Set #1
... The Shanghai to Beijing air traffic has increased due to competition from Air China. Air China lowered the price of a ticket because China Eastern Airlines merged and bought China Southern Airlines. Here are the new hypothetical supply and demand schedules for all airlines on the Shanghai to Beijing ...
... The Shanghai to Beijing air traffic has increased due to competition from Air China. Air China lowered the price of a ticket because China Eastern Airlines merged and bought China Southern Airlines. Here are the new hypothetical supply and demand schedules for all airlines on the Shanghai to Beijing ...
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.