Review of Chapters 14 and 15
... 32) The above figure shows two Lorenz curves. Suppose both Lorenz curves measure wealth. Then, the curves show that wealth is A) greater along Lorenz curve B. B) greater along Lorenz curve A. C) distributed more equally along Lorenz curve B. D) distributed more equally along Lorenz curve A. TRUE/FAL ...
... 32) The above figure shows two Lorenz curves. Suppose both Lorenz curves measure wealth. Then, the curves show that wealth is A) greater along Lorenz curve B. B) greater along Lorenz curve A. C) distributed more equally along Lorenz curve B. D) distributed more equally along Lorenz curve A. TRUE/FAL ...
Name:
... 7. At a price of $50 and a quantity of 105 units, the supply elasticity is zero. What does “the supply elasticity is zero” mean? ...
... 7. At a price of $50 and a quantity of 105 units, the supply elasticity is zero. What does “the supply elasticity is zero” mean? ...
ETP Economics Midterm Examination Fall Term 2008 1. Production
... 32. Which of the following quantities decrease in response to a tax on a good? a. the size of the market for the good, the effective price of the good paid by buyers, and consumer surplus b. the size of the market for the good, producer surplus, and the well-being of buyers of the good (consumer su ...
... 32. Which of the following quantities decrease in response to a tax on a good? a. the size of the market for the good, the effective price of the good paid by buyers, and consumer surplus b. the size of the market for the good, producer surplus, and the well-being of buyers of the good (consumer su ...
Answers to First Midterm
... numbers, but will not affect the rate of inflation between different years. 14. Tom currently earns $100 a week at his job. Tom expects inflation to be 10% a year for the next two years. In order for Tom to maintain the same real purchasing power of his salary, how much will his nominal salary need ...
... numbers, but will not affect the rate of inflation between different years. 14. Tom currently earns $100 a week at his job. Tom expects inflation to be 10% a year for the next two years. In order for Tom to maintain the same real purchasing power of his salary, how much will his nominal salary need ...
Exhibit 1 Demand curves
... a. buy twice as much of the product if the price drops 10 percent. b. require a 2 percent drop in price to increase their purchases by 1 percent. c. buy 2 percent more of the product in response to a 1 percent drop in price. d. require at least a $2 increase in price before showing any response to t ...
... a. buy twice as much of the product if the price drops 10 percent. b. require a 2 percent drop in price to increase their purchases by 1 percent. c. buy 2 percent more of the product in response to a 1 percent drop in price. d. require at least a $2 increase in price before showing any response to t ...
mcq micro 3
... 2) The "law of demand" most directly means that consumers buy A) more of a good the higher their incomes, ceteris paribus. B) less of a good the higher its price, ceteris paribus. C) buy more of a good the less is its supply, ceteris paribus. D) buy less of a good the greater is its supply, ceteris ...
... 2) The "law of demand" most directly means that consumers buy A) more of a good the higher their incomes, ceteris paribus. B) less of a good the higher its price, ceteris paribus. C) buy more of a good the less is its supply, ceteris paribus. D) buy less of a good the greater is its supply, ceteris ...
problem set 6
... 3 - ) In the long-run, profits equal zero in a competitive market because of a. increasing returns to scale b. identical products being produced by all firms c. the availability of information d. free entry and exit 4 - ) If firms in a P.C. industry are making economic profits, in the long run profi ...
... 3 - ) In the long-run, profits equal zero in a competitive market because of a. increasing returns to scale b. identical products being produced by all firms c. the availability of information d. free entry and exit 4 - ) If firms in a P.C. industry are making economic profits, in the long run profi ...
投影片 1
... market exchange is to use demand curve. • The idea: People’s valuation of a good is different. The keenest person is willing to pay more. The least enthusiastic person is willing is pay less. However, in most situations (in a competitive market), price charged for the good is the same for all differ ...
... market exchange is to use demand curve. • The idea: People’s valuation of a good is different. The keenest person is willing to pay more. The least enthusiastic person is willing is pay less. However, in most situations (in a competitive market), price charged for the good is the same for all differ ...
Price
... price rises and sellers’ costs do not, profit per unit rises, and they want to produce and sell more if price falls and sellers’ costs do not, profit per unit falls, and they want to produce and sell less ...
... price rises and sellers’ costs do not, profit per unit rises, and they want to produce and sell more if price falls and sellers’ costs do not, profit per unit falls, and they want to produce and sell less ...
Review for Exam 2
... Short run v. long run Economic cost v. accounting cost Marginal product of labor Average product of labor ...
... Short run v. long run Economic cost v. accounting cost Marginal product of labor Average product of labor ...
Monopoly
... • Like a competitive firm, a monopolist maximizes profit by producing the quantity where MR = MC. • Once the monopolist identifies this quantity, it sets the highest price consumers are willing to pay for that quantity. • It finds this price from the D curve. ...
... • Like a competitive firm, a monopolist maximizes profit by producing the quantity where MR = MC. • Once the monopolist identifies this quantity, it sets the highest price consumers are willing to pay for that quantity. • It finds this price from the D curve. ...
1 - Marshall University Personal Web Pages
... c. remains the same. d. rises and then falls. e. cannot be determined given the available information. ...
... c. remains the same. d. rises and then falls. e. cannot be determined given the available information. ...
Supply and demand
In microeconomics, supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.The four basic laws of supply and demand are: If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price. If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.↑