Absolute Advantage and Comparative advantage
This country has the absolute advantage in clogs (chocolate, clogs)
Germany 600 95
Netherlands 350 275
What is Netherlands?
If demand shifts to the right, this will happen to both your equilibrium price and quantity.
What is an increase in both
If it is 100o outside, what will happen to the demand for ice cream and what is the shifter?
What is The Demand Curve will shift to the Right (Increase), and the shifter is taste/preferences.
The most desirable alternative given up for the decision...
What is Opportunity Cost
What is the equation used to find price elasticity of demand along a segment of a demand curve?
What is % change Q / % change P?
This country has the absolute advantage in gummy bears (gummy bears , root beer)
Guatemala 80 40
Canada 70 100
What is Guatemala?
Equilibrium occurs when quantity demanded is _____ _____ to quantity supplied.
What is Exactly Equal?
If the price of iPhones goes up, what will happen to the demand for Samsung Phones, and what is the shifter?
What is The demand for Samsung Phones will go up, and the shifter is substitutes.
limited resources, unlimited wants
What is Scarcity??
Name 2 of the 3 factors which determine elasticity of price demand?
What is availability of substitutes, time, budget share
This country has the comparative advantage in chocolate (Chocolate, clogs)
Germany 600, 95
Netherlands 350, 275
What is Germany?
If supply shifts to the left this will happen to your equilibrium price and quantity.
What is an increase in price and a decrease in quantity
If Danny's Bagel Shop upgrades his mixers and ovens allowing him to make bagels faster, how would this shift the supply curve and what is the determinant?
What is The Supply Curve would shift to the right, and the Determinant is Technology.
Study how we choose scarce resources when making a choice
What is Economics
If the price elasticity of a good is greater than 1 the good is ________?
What is elastic?
This country has the comparative advantage in gummy bears. (gummy bears, root beer )
Canada 70, 100
Guatemala 80, 40
What is Canada?
If price moves along the curves, this will happen to your equilibrium price and quantity.
What is nothing
If an oil company expects the price of oil to be higher next year, what will happen to the supply of oil, and what is the determinant?
What is The supply curve will shift to the left (decrease) and the determinant is Expectations.
Opportunity Cost is examined using this graph
What is Production Possibilities Curve?
What does the income elasticity of a good measure?
What is how quantity demanded responds to a change in income
Argentina has the comparative advantage in this product (Flags, Toilet Paper)
Argentina 40, 50
Puerto Rico 50, 40
What is Toilet Paper?
Suppose the price of bacon is expected to fall in the future, and there is improved technology in the smoking process (grilling). How will these 2 events affect the market for bacon and what are the determinants.
What is Supply will increase due to technology, and Demand will decrease due to expectations?
If consumers' incomes rise, and instant ramen is an inferior good, what will happen to the demand curve, and what is the determinant?
What is The demand curve will shift to the left (decrease), and the determinant is income.
Scarcity forces us to do what
What is Make Choices
If the demand for a certain product is elastic, in order to increase total revenue, what should we do?
What is lower price?