Why did I do that?
If there is an increase in demand for a good, what will most likely happen to the price and quantity of the good exchanged?
They both increase
As price of a good increases _______________.
producers are willing to supply more of it.
The day robots steal your job, what happens to supply?
What is a rightward shift of supply because of technology?
Name two of the four determinants of elasticity of demand.
Substitutes, necessities vs luxuries,% of income, time.
The difference between “I’d sell this couch for $5” and “some weirdo just paid me $100,” expresses...
What is producer surplus
If an excise tax is imposed on a product, consumer surplus and producer surplus for this good will most likely change in which of the following ways?
They both fall
A market sold 100 apples for $4. When the price dropped to $2, they sold 400 apples. Determine the change in consumer surplus.
500
Farmers notice soy milk is suddenly more profitable than dairy milk. What will happen to the supply of cow's milk?
Decrease
Equilibrium price and quantity were at $50 and 500. A price floor was set at $40. Calculate the total deadweight loss after the price floor went into effect.
0
Suppose that Santi received an increase in his income from $6,000 to $18,000. This increase in income resulted in a decrease in the quantity demanded of Good O from 2,000 to 1,500. Calculate the income elasticity of demand and state if they are normal or inferior goods.
Income elasticity of demand = –0.29. Good O is an inferior good.