- Module 49.1: Consider the market for cheese-stuffed jalapeo peppers. There are t...
- Module 49.2: Again consider the market for cheese-stuffed jalapeo peppers. There...
- Module 49.3: Other things equal, a rise in price will result in which of the fol...
- Module 49.4: Consumer surplus is found as the area a. above the supply curve but...
- Module 49.5: Allocating kidneys to those with the highest net benefit (where net...
Solutions for Chapter Module 49: Consumer and Producer Surplus
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
the ability to produce a good using fewer inputs than another producer
total revenue divided by the quantity sold
the resources a bank’s owners have put into the institution
a visual model of the economy that shows how dollars flow through markets among households and firms
a tax designed to induce private decision makers to take account of the social costs that arise from a negative externality
the value of everything a seller must give up to produce a good
above-equilibrium wages paid by firms to increase worker productivity
costs that do not vary with the quantity of output produced
the accumulation of investments in people, such as education and on-the-job training
internalizing the externality
altering incentives so that people take account of the external effects of their actions
the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices
claims that attempt to prescribe how the world should be
a person’s normal income
the study of government using the analytic methods of economics
price elasticity of supply
a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price
the amount of a good that buyers are willing and able to purchase
an action taken by an informed party to reveal private information to an uninformed party
society’s understanding of the best ways to produce goods and services
an excess of imports over exports
a measure of happiness or satisfaction