Demand
An exogenous factor results in a change in quantity demanded at every price, it is called this.
What is a Demand Shock (or demand curve shift)
This is the standard mathematical formula used to calculate the price elasticity of demand.
What is % change in QD / % Change in Price
These costs do not change regardless of whether you produce one unit or one million units.
What are fixed costs?
The Total Revenue equation is this:
What is price * quantity
Because they have few substitutes and are "once-in-a-lifetime," post-season sports tickets typically have this type of demand.
what is inelastic?
This law states that, ceteris paribus, a price hike leads to a lower quantity demanded.
What is the Law of Demand?
If a 10% increase in price leads to a 2% drop in quantity demanded, the demand is considered this.
What is inelastic?
Money already spent on a movie ticket or a guaranteed athlete contract is categorized as this.
What is a sunk cost?
For a firm in a competitive market, profit is maximized at the quantity where market price equals this.
What is marginal cost?
When a team trades for a superstar, the surge in ticket inquiries despite a price hike is justified by a shift in this.
What is a change in Expectations?
If the price of Bud Light increases, the demand curve for Coors Light will do this.
What is "Shift right" (or shift out)
This type of elasticity measures how the quantity demanded of one good responds to a price change in another good.
This phenomenon occurs when an increase in an input, like labor, leads to a decline in that input's marginal product.
What is Law of Diminishing Marginal Returns?
What is willingness to pay?
In the production of a film, theline crew (cameramen and extras) represent this type of cost, which increases as the number of filming days grows.
What is a variable cost?
These are two products, like skis and ski boots, where an increase in the price of one leads to a fall in demand for the other.
What are complements?
This cross price elasticity tells you that 2 goods are substitutes
What is negative sign?
To find the Average Total Cost (ATC), you divide this figure by the total quantity produced.
Total Cost
The profit equation is this:
What is Total Revenue - Total Cost
Digital streaming services like Netflix have massive fixed costs but a marginal cost of adding one more viewer that is near this amount.
When your income rises and you buy less of a specific good, that good is categorized as this.
What is an Inferior Good?
True or False: a given demand curve has a constant price elasticity?
This represents the incremental cost of producing exactly one more unit.
What is Marginal Cost?
An individual firm’s supply curve is derived directly from this specific cost curve.
What is the marginal cost curve?
When a work crew becomes over-saturated with staff, the Marginal Cost curve begins to do this.
what is "increase"?