ECON Study Guide; exam !
* 5 foundations
• incentives & trade offs
• Opportunity costs
• Marginal thinking
• trade * Scarcity
* positive vs normative analysis * ceteris Paribus A endogenous vs exogenous factors * Opportunity cost and subjective value * Production possibility frontier curve * consumer vs capital goods * comparitive advantage in trade If you want to learn more check out What is the symbolism of the hammer and sickle?
Don't forget about the age old question of Is nominal data mutually exclusive?
* law of demand vs law of supply y shortage vs surplus * normal vs interior good * trade = double coincidence of wants
* Elasticity of demand A calculating elasticity
midpoint form: Ep - AQ / AP
EP 01 +Q2 / Pitle * elasticity coefficient * 3 variables of elasticity of demand exsistence of substitutes, share of broget, time adjust Don't forget about the age old question of Define plasticity.
time adjustment immediate, long, short wn * unitary value=-| not inelastic or elastic
Depreleedsen * Price ceilings us Price floors * Price googing * ticket scalpers and market price * minimum wage y surplus of workers - Unemployment
StudySoup If you want to learn more check out What are the three chambers of the heart?
paper on D2L
O plane ticket to vegas for $240 for 4 bus ticket for $120 for 16 hours
What hawly vare indifference?
Plane $ 240
$120 If you want to learn more check out What are the techniques of emotion work?
ilohrs 240 +4h = 120 +16h t set equal to each other
120= 12h . 10 = ñ $10 per hr
opportunity cost 7 128-85 - 135 peppers to get 80 tomatoes 3 NOG possible bic its outside the PPF A Bert shovid add and Emnie shavid subtract
- You could add up total columns
to see which one is better
at each category 1) Price increase them from $5 to $6 If you want to learn more check out What is the smallest stimulus that you can detect?
sandwich decrease from 200 to Iso calcuiate veveime and determine if demand
- is elastic or inelastic TR : 51200) = 1000 2 o.p.a demand drops by 100 TR: 61150) = 900 & 1
making it lelastic (ble it went down)
☺ demand function Qu= 20017
Supply function Qs = -
20+4P determine equallbrium price a quantity
Qd =Qs 200-7p =-20+4p
220 = LP
20 -2] 2 200-140=60=q 16 -20 780 - 60-9
o draw new PPF for an easier way to
gelato 8 things to increase supply curve
- techology, move suppliers, input costs lower (9 price increase $2 to 44 bought 2lbs to libs
midpoint form: % AQ HUR % AP at
inelastic <l elastic >
1 - WEI
show an increase in the price
domucenec merece an increase in price
decreases the quantity -Q demanded if there are more people buying.
there will be a shift in demand
( NO poverty = not enough to satisfy needs
2 economist try to understand HUMAN ACTION 13 normative statement - opinion
37 tay swifts best song is a (14) comparative advantage - * are cant do everything
O-setting the table (15) opportunity cost = the difference 5-3 = 82 ®
all of the above < how to wquire a good time, money, ene in expanding the PPF 7 beter technology ©
3 supply increases
og marginal thin linea costa benefit of one
y more unit of somethin a equlibrium both are į but
the price is 5 so 6 (21) PPF is a model.
a assuming resources remain fixed
what influences elastic or inclastic demand
Share of the budget © expected to fall
demand will decrease © (24) complementam goods. What will shift grapn left
demand decreasing ® ret Price 1, demand vecieve a subsidy, how will quanta manet price change?
2. exogeneous factor income © 27) will small increase in tax ver
in the long run
short non a large increase
38 Opportunity cost because its
"comparing two things
price increase y changes quant demanded
quant demands point on the line ) as price ļ the demand doesnt decrease by much
- relatively inelastic 6 30 opportunity costs what is given up to gain something B
bartening 7 double coincidence © 33 if income increases, equalibnim prices, quant v © 30 most elastic - most sensitive to price Change
© a BMW
* key word
(35 elasticity of demand measure responsiveness of
® quant demanded to a price change (36) rent control 7 price ceiling @ limite uwa ghian (37) raise price to reduce illegal drug use @ the (38) Price floor leads to surplus Qo< Qs 2
a) coefficient of -3.4 is depas had because al ☺ do not buying or selling, B No more scarcity ble
no shortage of anything