Dynamic Shifts
When supply and demand decrease proportionally, price …
stays the same
What type of customers are least responsive to price?
brand loyal
Total variable costs correspond to:
operating costs
sunk costs/unavoidable costs
George Soros manipulated which currency in 1997?
Thai Bhat
What is the name of the graph where supply decreases relative to demand?
Dynamic micro graph of cost push inflation
The steeper the slope...
The more inelastic the demand
Average fixed costs is equal to:
= TFC/Q
How do you calculate TRmax?
TRmax = P * Qsat/2
What is the top line and bottom line?
Total Revenue and Profit
T/F: When supply decreases relative to demand there is a shortage?
TRUE
What type of customers are gained when price decreases?
marginal
What is the breakeven point on cost curves?
Where TR = TC
Where is the most efficient use of both fixed and variable inputs?
ATCmin
Which country did Trump declare a currency manipulator?
China
What is the name of the graph where demand increases relative to supply?
Micro dynamic graph of demand-pull inflation
How is a unit elastic product’s TR affected by an increase in price?
What describes the production function term where the level of profits is less than the amount of money invested
Law of diminishing returns
What is the paradox of the flowerpot?
Law of diminishing returns- output will eventually increase at a decreasing rate
How can you tell a car is truly new?
Spikes on the tread of the tires
When demand decreases relative to supply what is the transfer?
From producers to consumers
If a product’s price increases by 6% and the quantity demanded decreases by 3%, what type of elasticity is this product?
inelastic
How would you describe the inputs to the right of ATCmin on the ATC curve?
overcapitalized
total variable cost get it's shape from:
the production function
Price wars commonly occurred with which two products?