- 3-2.1: How are prices set when using the cost-plus pricing strategy?
- 3-2.2: How is a market-based pricing strategy different from a value-based...
- 3-2.3: Why might shoppers want to set up an account on a retail Web site t...
- 3-2.4: What is economizing? How does using this buying strategy affect dem...
- 3-2.5: What is optimizing? How does using this buying strategy affect dema...
- 3-2.6: How can using effective time management strategies lead to better b...
Solutions for Chapter 3-2: Price and Demand
Full solutions for Personal Financial Literacy | 1st Edition
a person who is performing an act for another person, called the principal
a curve that shows the quantity of goods and services that firms choose to produce and sell at each price level
the resources a bank’s owners have put into the institution
the theoretical separation of nominal and real variables
the proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own
a graph of the relationship between the price of a good and the quantity demanded
a severe recession
diminishing marginal product
the property whereby the marginal product of an input declines as the quantity of the input increases
a strategy that is best for a player in a game regardless of the strategies chosen by the other players
the quantity of output that minimizes average total cost
input costs that do not require an outlay of money by the firm
the process by which workers find appropriate jobs given their tastes and skills
law of supply and demand
the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance
isk that affects all companies in the stock market
a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen
two goods with straight-line indifference curves
a legal minimum on the price at which a good can be sold
a person for whom another person, called the agent, is performing some act
value of the marginal product
the marginal product of an input times the price of the output
the price of a good that prevails in the world market for that good