Theorems/Equations
As price increases, demand decreases.
What is law of demand?
The cost of hot you choose is what you have to give up to get it
What is opportunity cost?
a direction resulted from a consumer’s demand decreasing
What is a shift left?
A response when government intervention limits mutual interactions.
What is deadweight loss?
1) the budget deficit is larger than ever
2) average rents decrease in cities with airBnB
3) teachers make more than lectures on average
4) meme stocks have two much power
What are examples of positive, normative, normative, positive?
As long as the parties involved can negotiate with each other, the private market should be able to resolve the inefficiencies created by externalities
What is Coarse Theorem
A tool economics use to describe and explain economic phenomena and to make predictions about what will happen under a particular circumstance
What is positive economics?
What is height of a demand curve?
The first state to approve congestion pricing.
What is New York?
Price drops
income increases
people influence their friends’ spending habits
A good becomes unfashionable
What is the exclusion?
When a resource is owned jointly, no one takes account of the negative externalities caused by overuse.
What is the tragedy of the commons?
A word that describes goods where when income rises, demand increases (takes place during a depression or a recession).
What are inferior goods?
Allocating resources, information to producers on opportunity cost of entering business, maximize consumers benefits by directing good to right audience
What information does an equilibrium point offer?
Forman and informal rules that structure human interactions
What are institutions?
2) If the price of bored ape goes up then the demand for luxury lion in this way.
What does demand increase?
What is price elasticity of demand?
A reaction to when the price of a good is higher than the opportunity cost of a consumer.
What is an excess supply?
What are shifts in the supply curve?f
A limitation due to needing voluntary organizations.
When demand decreases and supply increases
What is the shift for price up, quantity up, and the graph itself shifting left?
What is law of supply?
A vote trading activity
Ex: voting for a colleagues plan just to win support for you plan (you don’t necessarily support their plan).
What is log rolling?
Scenario: demand increases.
What shifts quantity up and price up?
The proclivity of elected officials to introduce projects that steer money to their communities
What are pork barrel politics?
When a 32% rise in price results in a 6% change in another.
What is a scenario that is inelastic?