S&D
The Law of Demand: As price falls, quantity demanded does this
What is increase?
If quantity demanded changes little in response to a large price change (e.g. a life saving medicine), demand is relatively this
What is inelastic?
An inefficiency resulting from a market intervention
What is dead weight loss?
Also where acorns come from, Pinocchio is made from this type of wood?
Oak
Total Revenue =
Quantity demanded equals quantity supplied is known as this
What is market equilibrium
A small price change causing a large change in quantity demanded then demand is relatively this
What is elastic?
This happens when Qd > Qs
What is a shortage?
This Canadian Province is home to the Argonauts, Maple Leafs, Blue Jays and Raptors of professional sports.
Ontario
What is PED = (% change Qd) / (% change P)
Which direction would the supply curve shift if a new technology cuts production time in half?
What is to the right?
Cross Price Elasticity: XED > 0
What are substitutes?
An effective price floor will create this
What is a surplus?
Closest Geographically Wins!
What U.S. state has the oldest average age?
Maine
End Point Formula for Percentage Change
What is ((New # - Old #) / Old #) x 100
Double shifter: A global recession while OPEC cuts oil production simultaneously. Identify the change to the global oil price.
What is indeterminant?
If income increases, but quantity demanded for a product declines (YED < 0), the good is said to be this
What is an inferior good?
A quota restricts a market based on this
What is quantity?
Closest Wins!
An actual unit of measurement for wine, a buttload is equal to this many gallons?
126
Cross Price Elasticity (XED) =
What is XED = (% change Qd good A) / (% change P good B)
Assume that only hamburgers are made from ground beef and that hot dogs and hamburgers are perfect substitutes.
Show what will happen in each market if the price of ground beef significantly increases.
Hint: You should have two graphs!
Supply of Hamburgers Decreases
Demand for Hot Dogs Increases
If a 15% change in quantity demanded results from a 15% change in price, then demand is said to be
What is unit elastic?
Using the graph on page 14 of your packet. identify the elasticity coefficient of Demand between a price of $13 and $12.
25% change in Q / 7.7% change in P = 3.25 coefficient (elastic demand)
Closest Geographically Wins!
This country has the most vending machines per capita.
Japan
Income Elasticity (YED) =
YED = (% change Qd) / (% change income)