Economics Unit 2 Chapters 5-7 Chapter 5 Summary Demand and
... Understand what happens when the market does not operate perfectly. Understand the differences between perfect competition, monopoly, and oligopoly. Identify the differences between private and public goods. ...
... Understand what happens when the market does not operate perfectly. Understand the differences between perfect competition, monopoly, and oligopoly. Identify the differences between private and public goods. ...
Slide 1
... was a 19.9 BILLION dollar business with more than $18 million a day in sales on its internet site. Dell’s vision was to sell directly to the consumer and allow customers to customize their needs. He could also sell for less. He also did not have to maintain warehouses of unsold goods since each comp ...
... was a 19.9 BILLION dollar business with more than $18 million a day in sales on its internet site. Dell’s vision was to sell directly to the consumer and allow customers to customize their needs. He could also sell for less. He also did not have to maintain warehouses of unsold goods since each comp ...
Chapter 6 and 7
... Excess demand Excess supply 1. What does excess demand mean to economist? 2. Why might a producer not be willing to sell at a low price? (assuming the product still made a profit) 2 reasons 3. What does surplus mean? 4. How long does it take to get a price to equilibrium? BONUS What word(s) do s ...
... Excess demand Excess supply 1. What does excess demand mean to economist? 2. Why might a producer not be willing to sell at a low price? (assuming the product still made a profit) 2 reasons 3. What does surplus mean? 4. How long does it take to get a price to equilibrium? BONUS What word(s) do s ...
Tutorial
... 5. An increase in the wage paid to grape pickers will cause the a. demand curve for grapes to shift to the right, resulting in higher prices for grapes. b. demand curve for grapes to shift to the left, resulting in lower prices for grapes. c. supply curve for grapes to shift to the left, resulting ...
... 5. An increase in the wage paid to grape pickers will cause the a. demand curve for grapes to shift to the right, resulting in higher prices for grapes. b. demand curve for grapes to shift to the left, resulting in lower prices for grapes. c. supply curve for grapes to shift to the left, resulting ...
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 ...
Chapter 10: Monopoly and Monopsony • Objectives – By the end of
... Objectives – By the end of this chapter, you should be able to: o Explain how the problems facing monopolistically competitive firms change between the short and long run both verbally and graphically. You should also be able to compare monopolistic competition with the outcomes of perfectly competi ...
... Objectives – By the end of this chapter, you should be able to: o Explain how the problems facing monopolistically competitive firms change between the short and long run both verbally and graphically. You should also be able to compare monopolistic competition with the outcomes of perfectly competi ...
Document
... A) compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2. B) compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period. C) measures the incr ...
... A) compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2. B) compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period. C) measures the incr ...
Economics 312/702 Macroeconomics Noah Williams Problem Set 3
... 1. This problem considers the qualitative effects of different types of shocks as potential sources of business cycle fluctuations. For each part use the two period dynamic general equilibrium model (with output supply and demand, labor supply and demand) to analyze the effects on output, interest r ...
... 1. This problem considers the qualitative effects of different types of shocks as potential sources of business cycle fluctuations. For each part use the two period dynamic general equilibrium model (with output supply and demand, labor supply and demand) to analyze the effects on output, interest r ...
Demand, Supply, and Market Equilibrium
... Shortage (Excess Demand) – a shortage occurs when the quantity demanded is greater than the quantity supplied at a particular price. Surplus (Excess Supply) – a shortage occurs when the quantity demanded is less than the quantity supplied at a particular price. Market Equilibrium – occurs when there ...
... Shortage (Excess Demand) – a shortage occurs when the quantity demanded is greater than the quantity supplied at a particular price. Surplus (Excess Supply) – a shortage occurs when the quantity demanded is less than the quantity supplied at a particular price. Market Equilibrium – occurs when there ...
Economics 11 Caltech Spring 2010
... 2.a.1 Output should go up because if the CEO has adopted the new technology it must reduce its costs. 2.a.2 The new technology is increasing the marginal product of workers (because their machines are going twice as fast) thus the old equilibrium W=pF’ no longer holds and the only way to restore ...
... 2.a.1 Output should go up because if the CEO has adopted the new technology it must reduce its costs. 2.a.2 The new technology is increasing the marginal product of workers (because their machines are going twice as fast) thus the old equilibrium W=pF’ no longer holds and the only way to restore ...
1 Problem
... curve is horizontal at P = 1.0. The aggregate demand curve is Y = 2 M P and M = 1, 500. 1. If the economy is initially in long-run equilibrium, what are the values of P and Y ? 2. What is the velocity of money in this case? 3. Suppose because banks start paying interest on checking accounts, the agg ...
... curve is horizontal at P = 1.0. The aggregate demand curve is Y = 2 M P and M = 1, 500. 1. If the economy is initially in long-run equilibrium, what are the values of P and Y ? 2. What is the velocity of money in this case? 3. Suppose because banks start paying interest on checking accounts, the agg ...
Explain the difference between short-run and long-run
... Explain the difference between short-run and long-run equilibrium in monopolistic competition. Monopolistic Competition is a market structure featuring few large and many small firms, fairly low entry barriers similar goods and relatively high competition. Over the short-run, firms can usually gain ...
... Explain the difference between short-run and long-run equilibrium in monopolistic competition. Monopolistic Competition is a market structure featuring few large and many small firms, fairly low entry barriers similar goods and relatively high competition. Over the short-run, firms can usually gain ...
lecture 4 supply and demand framework
... • The existence of markets allows people to trade, so they can specialize along the lines of comparative advantage. • Markets deal with scarcity by balancing the optimizing behavior of consumers and producers. Prices adjust to equilibrate the two sides of the market. • The consumers who actually get ...
... • The existence of markets allows people to trade, so they can specialize along the lines of comparative advantage. • Markets deal with scarcity by balancing the optimizing behavior of consumers and producers. Prices adjust to equilibrate the two sides of the market. • The consumers who actually get ...
Review Sheet #1
... (Note). At the equilibrium price the amount producers want to supply is just equal to the amount the consumers want to purchase. - Excess demand (shortage) - Excess supply (surplus) - Price ceiling and price floor Intervention in Markets The government may choose to intervene in markets in order to ...
... (Note). At the equilibrium price the amount producers want to supply is just equal to the amount the consumers want to purchase. - Excess demand (shortage) - Excess supply (surplus) - Price ceiling and price floor Intervention in Markets The government may choose to intervene in markets in order to ...
price quantity price stays the same quantity increases
... suppliers have a greater ability to respond in the long run. In the case of home builders, there may be a lag between an increase in prices and the builder’s ability to acquire land, get permits, and get construction underway – particularly for large builders. 4. Give two recent examples of (i) when ...
... suppliers have a greater ability to respond in the long run. In the case of home builders, there may be a lag between an increase in prices and the builder’s ability to acquire land, get permits, and get construction underway – particularly for large builders. 4. Give two recent examples of (i) when ...
Midterm 2
... Using the table above, and assuming that the market price is $4 and that $1 equal 1 util, answer the following (24 points): A. B. C. D. ...
... Using the table above, and assuming that the market price is $4 and that $1 equal 1 util, answer the following (24 points): A. B. C. D. ...
Practice Questions #3 Principles of Microeconomics
... Producer surplus unambiguously falls. The change in consumer surplus is ambiguous— on the one hand, some consumers don’t get to purchase the good anymore and this makes CS fall. But on the other hand those who still get the good pay even less for it, and this makes consumer surplus rise. There will ...
... Producer surplus unambiguously falls. The change in consumer surplus is ambiguous— on the one hand, some consumers don’t get to purchase the good anymore and this makes CS fall. But on the other hand those who still get the good pay even less for it, and this makes consumer surplus rise. There will ...
Ch3 - YSU
... • Does the fact that a market automatically reach its equilibrium also guarantee the achievement of economic efficiency – all goods at their socially optimal levels? – Only if the benefits to buyers and/or the costs to sellers are not shared by others. (Efficiency Principle) – Buyers and sellers are ...
... • Does the fact that a market automatically reach its equilibrium also guarantee the achievement of economic efficiency – all goods at their socially optimal levels? – Only if the benefits to buyers and/or the costs to sellers are not shared by others. (Efficiency Principle) – Buyers and sellers are ...
Topic 1.2.6 What determines the price
... need to look at demand and supply curves on the same diagram. The demand curve slopes ____________, indicating that more will be purchased as price falls, while the supply curve slopes _____________, indicating that more sellers enter the market as prices rise. Draw a demand and supply curve on the ...
... need to look at demand and supply curves on the same diagram. The demand curve slopes ____________, indicating that more will be purchased as price falls, while the supply curve slopes _____________, indicating that more sellers enter the market as prices rise. Draw a demand and supply curve on the ...
General Equilibrium
... demand must equal the value of aggregate consumption from their budget constraints. But does this lead to the conclusion that the number of goods consumed equals the number of available supply (i.e. endowment)? After all, the Walrasian equilibrium is defined to be where the total demand is less than ...
... demand must equal the value of aggregate consumption from their budget constraints. But does this lead to the conclusion that the number of goods consumed equals the number of available supply (i.e. endowment)? After all, the Walrasian equilibrium is defined to be where the total demand is less than ...