Document
... • How should it price the camera and film? – suppose that marginal costs of the film and of making the camera are zero (to keep things simple) – suppose also that there are two types of consumer: high-demand and low-demand ...
... • How should it price the camera and film? – suppose that marginal costs of the film and of making the camera are zero (to keep things simple) – suppose also that there are two types of consumer: high-demand and low-demand ...
Prices
... Ski lift tickets are cheaper bought away from the ski resort. Gasoline companies will set higher prices on gas stations near freeway off-ramps. Versioning or Premium Pricing or Quality discrimination: Offering a more expensive versions of the same good at a price that does not reflect differences ...
... Ski lift tickets are cheaper bought away from the ski resort. Gasoline companies will set higher prices on gas stations near freeway off-ramps. Versioning or Premium Pricing or Quality discrimination: Offering a more expensive versions of the same good at a price that does not reflect differences ...
Elastic Demand
... (c) a change in consumer expectations (d) a change in the size of the population 2. Which of the following statements is accurate? (a) When two goods are complementary, increased demand for one will cause decreased demand for the other. (b) When two goods are complementary, increased demand for one ...
... (c) a change in consumer expectations (d) a change in the size of the population 2. Which of the following statements is accurate? (a) When two goods are complementary, increased demand for one will cause decreased demand for the other. (b) When two goods are complementary, increased demand for one ...
Chapter 1 – the market system - The Good, the Bad and the Economist
... 3) Proportion of income spent on the good (this is actually NOT TRUE but since it’s in your syllabus I shall have to bring it up) ‘How many of you bought paper clips this week? None? How about rubber bands? No? How many of you have never bought paper clips or rubber bands?’ Every hand in the class g ...
... 3) Proportion of income spent on the good (this is actually NOT TRUE but since it’s in your syllabus I shall have to bring it up) ‘How many of you bought paper clips this week? None? How about rubber bands? No? How many of you have never bought paper clips or rubber bands?’ Every hand in the class g ...
Chapter 07 Key Question Solutions
... Buy 2 units of X and 5 units of Y. Marginal utility of last dollar spent will be equal at 4 (= 8/$2 for X and 4/$1 for Y) and the $9 income will be spent. Total utility = 48 (= 10 + 8 for X plus 8 + 7 + 6 + 5 + 4 for Y). When the price of X falls to $1, the quantity of X demanded increases from 2 to ...
... Buy 2 units of X and 5 units of Y. Marginal utility of last dollar spent will be equal at 4 (= 8/$2 for X and 4/$1 for Y) and the $9 income will be spent. Total utility = 48 (= 10 + 8 for X plus 8 + 7 + 6 + 5 + 4 for Y). When the price of X falls to $1, the quantity of X demanded increases from 2 to ...
McGraw-Hill/Irwin
... Profit is P – ATC times output at the profitmaximizing level of output. Perfectly competitive firms shut down if P < AVC. The supply curve of a competitive firm is its MC curve above minimum AVC. The short-run market supply curve is the horizontal sum of the MC curves for all the firms in the market ...
... Profit is P – ATC times output at the profitmaximizing level of output. Perfectly competitive firms shut down if P < AVC. The supply curve of a competitive firm is its MC curve above minimum AVC. The short-run market supply curve is the horizontal sum of the MC curves for all the firms in the market ...
Chapter 4 The Heckscher
... international trade. • Scarce factors will lobby government for trade protection. • Even though some in society lose, the country overall benefits from international trade relative to autarky. • A system of taxation and transfers could be developed to compensate the losers while leaving the gainers ...
... international trade. • Scarce factors will lobby government for trade protection. • Even though some in society lose, the country overall benefits from international trade relative to autarky. • A system of taxation and transfers could be developed to compensate the losers while leaving the gainers ...
revise asap!!! CH. 4 NOTES (3-5-12 to 3-7
... Working with Demand Elasticities Similarly, assume the price of steak rises by $1, from $5 to $6 per pound, and the quantity demanded falls from 20 tons to 19 tons. This implies a decrease of 1 ton per $1 increase in the price, or: Elasticity of Demand: ...
... Working with Demand Elasticities Similarly, assume the price of steak rises by $1, from $5 to $6 per pound, and the quantity demanded falls from 20 tons to 19 tons. This implies a decrease of 1 ton per $1 increase in the price, or: Elasticity of Demand: ...
Chapter 6 - How Firms Make Decisions: Profit Maximization
... If we deduct only costs recognized by accountants, we get one definition of profit Accounting profit = Total revenue – Accounting costs A broader conception of costs (opportunity costs) leads to a second definition of profit Economic profit = Total revenue – All costs of production Or Total re ...
... If we deduct only costs recognized by accountants, we get one definition of profit Accounting profit = Total revenue – Accounting costs A broader conception of costs (opportunity costs) leads to a second definition of profit Economic profit = Total revenue – All costs of production Or Total re ...
Consumer Choice and Elasticity
... • The demand curve shows the amount of a product consumers would be willing to buy at different prices for a specific period. • The law of demand states that there is an inverse relationship between the quantity of a product purchased and its price. • Reasons the demand curve slopes downward: • Subs ...
... • The demand curve shows the amount of a product consumers would be willing to buy at different prices for a specific period. • The law of demand states that there is an inverse relationship between the quantity of a product purchased and its price. • Reasons the demand curve slopes downward: • Subs ...
Multiple Inputs & Outputs
... a curve depicting the maximum amount of various combinations of two products that can be produced using a given (or fixed) level of inputs. • Marginal Rate of Product Substitution (MRPS) – measures the slope of the PPF • MRPS describes the rate at which one output must be decreased as production of ...
... a curve depicting the maximum amount of various combinations of two products that can be produced using a given (or fixed) level of inputs. • Marginal Rate of Product Substitution (MRPS) – measures the slope of the PPF • MRPS describes the rate at which one output must be decreased as production of ...
Chapter 22 Aggregate Demand and Supply Analysis
... • A permanent negative supply shock—such as an increase in illadvised regulations that causes the economy to be less efficient, thereby reducing supply—would decrease potential output and shift the long-run aggregate supply curve to the left • Because the permanent supply shock will result in high ...
... • A permanent negative supply shock—such as an increase in illadvised regulations that causes the economy to be less efficient, thereby reducing supply—would decrease potential output and shift the long-run aggregate supply curve to the left • Because the permanent supply shock will result in high ...
Document
... requires that some specified fraction of a final good be produced domestically. – This fraction can be specified in physical units or in value terms. ...
... requires that some specified fraction of a final good be produced domestically. – This fraction can be specified in physical units or in value terms. ...
Supply and Demand - Cabrillo College
... SD-64) The cost of mass production printing falls. In the market for Day-Planners, there is a. An increase in quantity demanded b. A decrease in quantity demanded c. An increase in quantity supplied d. A decrease in quantity supplied e. No change SD-65) The price of planner expansion sets and refill ...
... SD-64) The cost of mass production printing falls. In the market for Day-Planners, there is a. An increase in quantity demanded b. A decrease in quantity demanded c. An increase in quantity supplied d. A decrease in quantity supplied e. No change SD-65) The price of planner expansion sets and refill ...
Theory of Consumer Behavior
... Sample Consumer Behavior Questions 1. Jamie gets utility from purchasing comic books. When he bought his first Spiderman book it ...
... Sample Consumer Behavior Questions 1. Jamie gets utility from purchasing comic books. When he bought his first Spiderman book it ...
SUPPLY WORKSHEET
... Application of Supply 1. The law of supply states that when the price increases, the quantity supplied will_____________. 2. When the price decreases, the quantity supplied will __________________. ...
... Application of Supply 1. The law of supply states that when the price increases, the quantity supplied will_____________. 2. When the price decreases, the quantity supplied will __________________. ...
Labour Demand
... must be downward sloping do not intersect that are higher indicate more output are convex to the origin have a slope that is the negative of the ratio of the marginal products of labour and capital. The absolute value of this is called the marginal rate of technical substitution. ...
... must be downward sloping do not intersect that are higher indicate more output are convex to the origin have a slope that is the negative of the ratio of the marginal products of labour and capital. The absolute value of this is called the marginal rate of technical substitution. ...
Working Paper No. 313
... That is, they have to end up with somewhere in the defined consumption set with probability one. ...
... That is, they have to end up with somewhere in the defined consumption set with probability one. ...
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.