Supply/Demand
The quantity of a good or service that some consumers that are willing and able to buy at a given price.
What is quantity demanded?
What determines the market equilibrium price?
The intersection of supply and demand curves.
How do you calculate marginal utility?
(change in utility)/(change in quantity)
The rule that governs how much a firm should produce in the short run.
What is MR is >or= MC?
The four stages of the business cycle.
Peak, recession, tough, expansion
As consumers income increases, the demand for Teslas increases. What are teslas?
Normal good.
The description of the price control when the minimum price is below market equilibrium.
What is a non-binding price floor?
What kind of costs are the costs at 0 quantity?
Total fixed costs.
Unlike in a PC, in a monopoly, a firm’s mr and demand are ____.
Decreasing
Data for 2016
• total population = 300
• children under age 16 = 240
• elderly retired people = 6
• full time students = 15
• full time homemakers = 6
• people working full time for pay = 21
• people working part time for pay = 6
• people not working but seeking employment = 3
• people not working but have given up seeking employment = 3
Calculate the unemployment rate for 2016, using this data.
10%
The effect on the supply curve of farmers withholding some of their current corn harvest from the market because they anticipate a higher price of corn in the near future.
Leftward shift
The result on equilibrium price and quantity when demand decreases.
What is both decrease?
This principle and equation determines how resources can be allocated for maximum utility.
What is the equal marginal principle?
MU per $ of item 1 = MU per $ of item 2.
A situation in which a change in the strategy followed by one producer will likely affect the sales, profits, and behavior of another producer and what type of market does this appear in
Mutual interdependence, oligopoly
If the Consumer Price Index was 225.64 in 2012 and 235.59 in 2013, calculate the inflation rate from 2012 to 2013 (round to the second decimal place)
4.41%
An increase in the price of dinners at restaurants would
likely cause the demand curve for babysitters to shift __________.
This is because fancy dinners and babysitting services are
likely _____________.
The effect on equilibrium price and quantity for the market for hot dogs when minimum wage for increases.
What is quantity decrease and price increase?
What is total costs less fixed costs divided by the quantity produced?
AVC- average variable costs.
Second degree price discrimination.
What is block pricing?
See question 2.
2 workers.
A market for guitars is composed of 150 producers/sellers. At a price of $1,000 per guitar, 50 of these producers/sellers are willing and able to sell 35 each. Each of the remaining producers/sellers are willing and able to sell 200 guitars at $1,000 per guitar. Give the quantity supplied at $1,000.
21,750
The effect on equilibrium price and quantity. Suppose mac and cheese is an inferior good and that mac and cheese consumers experience an increase in their income. Additionally, the technology used to produce mac and cheese has improved.
What is a decrease in price and unknown change in quantity?
See question 3
2 chocolates, 4 hard candies.
In a PC, in the short run a firm should shut down only if MR is less than ____.
AVC
See Question 1.
64.9