Assumptions
Supply and Demand
Equilibrium
Elasticity
Market Failure
100
Ceteris Paribus
What is...
all other things being equal/constant
100
This causes causes movement along the demand curve. (Extensions and contractions)
What is a change in the price of a good/service?
100
The price where quantity demanded is equal to quantity supplied
What is the equilibrium price?
100
The formula for YED
What is:
YED = (%ΔQd)/(%ΔY)
100
A price floor results in this type of market failure.
What is a ...surplus
200
The theory that all consumers and producers have complete and instantaneous knowledge of all market prices, their own utility, and own cost functions
What is...
perfect information
200
4 of the determinants of demand
What are changes in...
price of a related good (Substitute/Compliment)
Income Level
Tastes and preferences
Future price expectations
Number of Consumers (Population
200
The difference between what consumers are willing to pay for a good/service and how much they actually pay.
What is consumer surplus?
200
The PED of a medicine if a 50% increase in price yields a 10% decrease in quantity demanded.
What is -0.2
Half credit if no negative
200
This is when Marginal Social Cost is greater than Marginal Private Cost.
What is... a negative externality of production
300
the loss of potential gain from the next best choice when one alternative is chosen.
What is opportunity cost?
300
A diagram showing the impact on supply when the cost of an input good decreases
What is 
300
This occurs when the price is higher than the equilibrium price.
What is a surplus?
300
The type of good represented by this Engel Curve.
What is..
an inferior good.
300
This area represents welfare loss from the externality.
What is area d?
400
the phenomenon that each additional unit of consumption leads to an ever-smaller increase in utility/benefit. For example, the first slice of pizza is way better than the 15th slice.
What is diminishing marginal utility?
400
A diagram showing supply and demand for Disney Plus when Netflix raises their prices.
What is...
400
750 in this image:
What is producer surplus?
400
A diagram of perfectly elastic supply.
What is
400
A bench in a public park is an example of this type of good.
What is common pool
It is rivalrous but not exludable.
500
The theory that adding an additional factor of production will actually result in smaller increases in output as long as one FOP is fixed.
What are...
Diminishing Marginal Returns
500
The impact an increase in the price of french fries will have on the demand for hamburgers.
What is decrease demand.
500
What is the equilibrium price and quantity in this market?
What is:
$8 per pizza, 600 pizzas per week
500
4 of determinants of PES
What are...
time, mobility of factors of production, unused capacity, ability to store, rate at which costs increase
500
2 examples of positive externalities of consumption.
What are...
education, vaccines, improving your yard/garden, biking instead of driving, going to the dining hall during off-peak hours.