CH1 PS
Price ceilings lead to ___, price floors lead to ___
A simplified representation that is used to study a real situation.
What is a model?
An increase in the price of a good will result in this.
What is a decrease in the quantity demanded?
If the price is __ this is who will purchase.
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Who is ___
The formula used to find the percent change
What is %change in B/% change in A?
The term we use to refer to the idea that we do not have sufficient resources to produce all the goods and services we want.
What is scarcity?
All points inside the production possibility frontier are
What is Inefficient?
A change in the price of a good results in this.
What is movement along the demand curve?
If the price is ___ this many will be sold
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The midpoint formula.
What is:
(B2-B1)/Average B divided by (A2-A1)/average A
(for A elasticity of B)
The term used to refer to what is given up to acquire something.
This allows a country to consume outside its production possibility frontier.
What is trade?
If goods A and B are substitutes, an increase in the price of good B will result in this.
What is an increase in the demand for good A?
Let’s say you want to get rid of your couch. You are willing to give it away for free but your friend offers you $20 for it. You have experienced "____ ".
What is producer surplus gain?
If a good is a luxury with many substitutes, then demand will tend to do this.
What is 'be more price-elastic'?
You are offered free Taylor Swift tickets. The opportunity cost of going is:
A) zero
B) the price listed on the ticket
C) Whatever you would’ve done had you not gone to the concert
What is "C"?
Points A and B are this.
If goods A and Z are complements, a decrease in the price of good Z will result in this.
What is an increase demand for good A?
Let’s say you want to get rid of your couch. You are willing to give it away for free but your friend offers you $20 for it.
Your friend has experienced this.
What is consumer surplus loss?
A good is likely to have an elastic demand curve if the good is this.
What is the good is a luxury? OR What is the good has many substitutes?
Everyone gets his or her fair share of the goods and services produced.
What is equity?
The opportunity cost for Tom to move from point B on the curve to point A is this.
What is 10 fish.
The equilibrium price and quantity are this.
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What is 5 and $50?
A and B are complements. If there is a decrease in the price of B, producer surplus in the B market will do the following.
What is 'will increase'?
Insulin is a product that is this.
Highly inelastic