1 - cloudfront.net
... 4. The diagram above shows the demand and supply curves for a product. The equilibrium price could rise from P1 to P2 if (A) consumers’ incomes increased (B) P2 were set as a legal maximum (C) subsidies for producers increased (D) the price of a complementary product increased (E) costs of productio ...
... 4. The diagram above shows the demand and supply curves for a product. The equilibrium price could rise from P1 to P2 if (A) consumers’ incomes increased (B) P2 were set as a legal maximum (C) subsidies for producers increased (D) the price of a complementary product increased (E) costs of productio ...
Total cost
... A time frame in which one or more resources used in production is fixed. For most firms, capital is fixed in the short run. Other resources used by the firm (such as labor, raw materials, and energy) are variable in the short run. Short-run decisions are easily reversed. • The Long Run A t ...
... A time frame in which one or more resources used in production is fixed. For most firms, capital is fixed in the short run. Other resources used by the firm (such as labor, raw materials, and energy) are variable in the short run. Short-run decisions are easily reversed. • The Long Run A t ...
Principles of Microeconomics Sample Mid-Term Examination
... Over the past year, the number of houses in Calgary using natural gas for heating increases while the number of firms producing natural gas decreases. b) Market for Kraft dinner macaroni (an “inferior” good): (5 marks) Over the past year, the average income in Calgary rose by 5% while the Kraft dinn ...
... Over the past year, the number of houses in Calgary using natural gas for heating increases while the number of firms producing natural gas decreases. b) Market for Kraft dinner macaroni (an “inferior” good): (5 marks) Over the past year, the average income in Calgary rose by 5% while the Kraft dinn ...
2.1 Supply.Demand.Shifters
... 2. Corn syrup, used with pecans to make pecan pie, has risen in price 3. Price of walnuts increases 4. Household income increases in China 5. Price of pecans drops 6. US trade agreements allow for more pecans to be sold in more countries 7. Pecan prices expected to be higher next year 8. Famous cele ...
... 2. Corn syrup, used with pecans to make pecan pie, has risen in price 3. Price of walnuts increases 4. Household income increases in China 5. Price of pecans drops 6. US trade agreements allow for more pecans to be sold in more countries 7. Pecan prices expected to be higher next year 8. Famous cele ...
GMicro_Study Guide_F..
... The compensated demand function is xc E / p x .3B1px.7 p.7y . d.) Suppose that income equals $400, Px=$25, Py=$5. What is the equivalent and compensating variation associated with an increase in the price of X from $25 to $28. The compensating variation is given by the additional amount nec ...
... The compensated demand function is xc E / p x .3B1px.7 p.7y . d.) Suppose that income equals $400, Px=$25, Py=$5. What is the equivalent and compensating variation associated with an increase in the price of X from $25 to $28. The compensating variation is given by the additional amount nec ...
Chapter 4
... line to change slope but keeping utility fixed (so stay on original indifference curve). This new b.c. is just temporary one to show this effect. • Then Income effect: Allow pure change I as a shift of this new temporary budget line up to higher indifference curve. Shows the increased utility from t ...
... line to change slope but keeping utility fixed (so stay on original indifference curve). This new b.c. is just temporary one to show this effect. • Then Income effect: Allow pure change I as a shift of this new temporary budget line up to higher indifference curve. Shows the increased utility from t ...
ACTUAL FALLL 2011 ECO 102 2nd MID
... 4. Which of the following is not a reason for economies of scale? a. inherent in the technology such as in oil pipelines and warehouses. b. specialization in the division of labor (the pin factory). c. technologies such as drilling which must be embodied in costly capital to be used. d. spreading fi ...
... 4. Which of the following is not a reason for economies of scale? a. inherent in the technology such as in oil pipelines and warehouses. b. specialization in the division of labor (the pin factory). c. technologies such as drilling which must be embodied in costly capital to be used. d. spreading fi ...
Lecture 2 The Law of Demand
... generally ignore them, but we know they exist ■ Look to marketing and psychology for guidance here, not economists! ...
... generally ignore them, but we know they exist ■ Look to marketing and psychology for guidance here, not economists! ...
1) Economics is the study of how people choose
... C) prices being too high for consumers and yet too low for producers. D) unstable prices. 6) In broad terms the difference between microeconomics and macroeconomics is that A) they use different sets of tools and ideas. B) microeconomics studies decisions of individual people and firms and macroecon ...
... C) prices being too high for consumers and yet too low for producers. D) unstable prices. 6) In broad terms the difference between microeconomics and macroeconomics is that A) they use different sets of tools and ideas. B) microeconomics studies decisions of individual people and firms and macroecon ...
Middle-class squeeze
The middle-class squeeze is the situation where increases in wages fail to keep up with inflation for middle-income earners, while at the same time, the phenomenon fails to have a similar impact on the top wage earners. Persons belonging to the middle class find that inflation in consumer goods and the housing market prevent them from maintaining a middle-class lifestyle, making downward mobility a threat to aspirations of upward mobility. In the United States for example, middle-class income is declining while many goods and services are increasing in price, such as education, housing, child care and healthcare.