You own 50 shares of Disney @ $50. The stock rallies to $54. What is your profit or loss?
$200
100
Opportunity Cost
What you give up to get something
100
What will happen to P and Q in this market:
Market for oranges...there is a hurricane that destroys much of the orange crop.
Price up, quantity down.
100
Draw and label consumer surplus and producer surplus given this information:
Market for oranges...there are 1000 sold at the equilibrium price of $1.
Graph
100
Connecticut
Hartford
200
You own 1250 shares of TSLA @ $235. The stock drops $17. What is your profit or loss?
$-21,250
200
Production Possibilities Frontier
A graph that shows the combinations of output that an economy can produce.
200
What will happen to P and Q in this market:
Market for pizza...there is a new technology that allows us to create pizza faster
Price down, quantity up
200
Draw and label consumer surplus, producer surplus, and tax revenue given this information:
Market for oranges...there are 1000 sold at the equilibrium price of $1. The government decides to tax sellers of oranges $.25 each.
Graph
200
New York
Albany
300
You own 100 shares of UA @ $40. The stock rallies 8%. What is your profit or loss?
$320
300
inferior good
an increase in income leads to a decrease in demand
300
What will happen to P and Q in this market:
Market for ice cream...the price of frozen yogurt increases.
Price up, quantity up.
300
Market for oranges...there are 1000 sold at the equilibrium price of $1. The government decides to tax sellers of oranges $.25 each. If buyers pay $1.05 after this tax, what do sellers receive?
80 cents
300
West Virginia
Charleston
400
You own 100 shares of MSFT @ $25, and you are short 200 shares of GPRO @ $38. MSFT is currently trading at $31 and GPRO is at $41. What is your profit or loss?
Flat
400
substitutes
Two goods for which an increase in the price of one leads to an increase in the demand for the other
400
What will happen to P and Q in this market:
Market for laptops...Frank discovers a new technology that allows us to manufacture laptops more quickly, at the same price. Tom Brady becomes a laptop spokesperson.
Price unknown, Quantity up
400
Market for oranges...there are 1000 sold at the equilibrium price of $1. The government decides to tax sellers of oranges $.25 each. If buyers pay $1.05 after the tax, which curve is more elastic?
Demand curve
400
Florida
Tallahassee
500
You are short 800 shares of CMG @ $400. The stock drops 15%. What is your profit or loss?
$48000
500
elasticity
the measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinants (often price)
500
What will happen to P and Q in this market:
Market for chocolate...there is a natural disaster that destroys the majority of the cocoa crop. The FDA releases a study that claims chocolate is good for your heart.
Price up, Quantity unknown.
500
What is the rule that we've talked about for tax incidence and elasticity?
Whoever bears less of the tax, that curve is more ELASTIC