Show:
Elasticity
Trade
Vocab
Numbers & Equations
100
Demand is said to be elastic if a one percent change in price results in a __________ than one percent change in the quantity demanded.
What is greater?
100
This is the ability to produce a good or service at a lower opportunity cost than another producer.
What is comparative advantage?
100
A ceiling placed on the cost of oil or a minimum wage are examples of this.
What is a price control?
100
In an economics equation, PW stands for this.
What is world price?
200
Goods with close substitutes will tend to have relatively _____ price elasticities.
What is high?
200
Who in a society benefits from importing?
The consumers.
200
This is the gap created between the amount consumers pay and suppliers receive when a tax is levied.
What is a price wedge?
200
P x Q = this
What is total revenue?
300
Scarce resources tend to do this to supply elasticity.
What is make them more inelastic?
300
Domestic consumers do this at world price.
What is reduce consumption?
300
The reduction of "social welfare" that comes when a tax is applied is known as this.
What is deadweight loss?
300
ΔQ/ΔP = 1/e where is is this.
What is elasticity?
400
A vertical line on a graph represents this type of demand elasticity.
What is perfectly elastic?
400
Explain difference between absolute and comparative advantage.
Varies
400
PPF stands for this.
What is production possibility frontier?
400
If the opportunity cost of one fish is one coconut this is the slope of Crusoe's PPF.
What is -1
500
If a 20% increase in price leads to a 20% increase in quantity supplied, the elasticity equals this numeric value.
What is one.
500
This is when the action of one person affects the well-being of someone else but where neither party pays nor is paid for these effects.
What is an externality?
500
The increase in cost to the producer that happens with each additional unit of output is known as this.
What is marginal cost?
500
If the value of elasticity is infinite, it is considered this.
What is perfectly elastic?