Managerial Economics
... • Derived by horizontally summing demand curves for all individuals in market • Because prices along market demand measure the economic value of each unit of the good, it can be interpreted as the marginal benefit curve for a good ...
... • Derived by horizontally summing demand curves for all individuals in market • Because prices along market demand measure the economic value of each unit of the good, it can be interpreted as the marginal benefit curve for a good ...
Consumer Behavior, Utility Maximization, Indifference Curves
... Budget line: a schedule or curve that shows various combinations of two products a consumer can purchase with a specific money income Income Δ Δ curve (up right; down left) Price Δ: if both Δ shift; if one slope Δ ...
... Budget line: a schedule or curve that shows various combinations of two products a consumer can purchase with a specific money income Income Δ Δ curve (up right; down left) Price Δ: if both Δ shift; if one slope Δ ...
cross elasticity of demand
... income rise more is demand at each price level. We make a distinction between normal necessities and normal luxuries. • Necessities have an income elasticity of demand of between 0 and +1. Demand rises with income, but less than proportionately. Often this is because we have a limited need to consum ...
... income rise more is demand at each price level. We make a distinction between normal necessities and normal luxuries. • Necessities have an income elasticity of demand of between 0 and +1. Demand rises with income, but less than proportionately. Often this is because we have a limited need to consum ...
Income Effect on Consumer Equilibrium
... However, for some goods demand depends on the demand of other people. Network externalities exist. ...
... However, for some goods demand depends on the demand of other people. Network externalities exist. ...
Chapter 5: Household Behavior and Consumer Choice
... Factors that influence the quantity of a given good or service demanded by a single household include: • The price of the product in question. • The income available to the household. ...
... Factors that influence the quantity of a given good or service demanded by a single household include: • The price of the product in question. • The income available to the household. ...
objective
... total annual cost of capital if positive, the company is creating wealth if negative, then the company is destroying wealth key feature: focuses on after-tax operating income and the actual cost of capital EVA = After-tax operating income – [Weighted average cost of capital X total capital employ ...
... total annual cost of capital if positive, the company is creating wealth if negative, then the company is destroying wealth key feature: focuses on after-tax operating income and the actual cost of capital EVA = After-tax operating income – [Weighted average cost of capital X total capital employ ...
Utility Max.f05
... An increase in the price of good X means that the budget constraint gets steeper The substitution effect is the movement from point A to point C ...
... An increase in the price of good X means that the budget constraint gets steeper The substitution effect is the movement from point A to point C ...
Behind the Demand Curve: Consumer Choice
... the sole explanation of why the market demand curve slopes downward. ...
... the sole explanation of why the market demand curve slopes downward. ...
Chapter 8 Slutsky Equation
... With the same tax revenue, the utility level attained is higher with income tax than with the quantity tax. But quantity tax has a stronger effect in reducing the consumption of good 1 than income tax. ...
... With the same tax revenue, the utility level attained is higher with income tax than with the quantity tax. But quantity tax has a stronger effect in reducing the consumption of good 1 than income tax. ...
Income Elasticity of Demand
... Quantity demand is not very sensitive to changes in disposable income ...
... Quantity demand is not very sensitive to changes in disposable income ...
Basic income
An unconditional basic income (also called basic income, basic income guarantee, universal basic income, universal demogrant, or citizen’s income) is a form of social security system in which all citizens or residents of a country regularly receive an unconditional sum of money, either from a government or some other public institution, in addition to any income received from elsewhere.An unconditional income transfer of less than the poverty line is sometimes referred to as a ""partial basic income"".Basic income systems that are financed by the profits of publicly owned enterprises (often called Social dividend or Citizen's dividend) are major components in many proposed models of market socialism. Basic income schemes have also been promoted within the context of capitalist systems, where they would be financed through various forms of taxation.Similar proposals for ""capital grants provided at the age of majority"" date to Thomas Paine's Agrarian Justice of 1795, there paired with asset-based egalitarianism. The phrase ""social dividend"" was commonly used as a synonym for basic income in the English-speaking world before 1986, after which the phrase ""basic income"" gained widespread currency. Prominent advocates of the concept include Philippe Van Parijs, Ailsa McKay, André Gorz, Hillel Steiner, Peter Vallentyne, and Guy Standing.