Econ 2106 - Study guides, Class notes & Summaries

Define elasticity: Correct Answer-A dimensionless measure of sensitivity or responsiveness. EX: How responsive is the quantity of oil demanded to a change in the price of oil? Define the price elasticity of demand: Correct Answer-A measure of the responsiveness of quantity demanded to a change in price. More responsive equals more elastic. Price elasticity of demand = percentage change in quantity demanded / percentage change in price. Define the price elasticity of supply: Correct Answ...

Which of the following concepts is a central part of Microeconomics? - exchange The current demand curve for an inferior good shifts leftward if _____________. - buyers' income increases You observe that an increase in the price of salsa decreases the demand for tortilla chips and increases the demand for potato chips. You can conclude that - salsa and tortilla chips are complements Study Graphs - Study Graphs Which of the following influence the supply of a product? - technology "De...

a small number of strategically interdependent firms - The unique characteristic of an oligopolistically competitive market is monopolistic competition - Under which of the following market structures would you expect to see firms engaged in non‐price competition such as advertising? less; higher - Compared to a perfectly competitive firm operating in the long run, a monopolistic competitor will produce _____ at a ______ price. less than price since the demand facing the monopolis...

Principle 1 - Choices are necessary because resources are scarce Principle 2 - There is always an opportunity cost that comes with choices made with scarce resources Opportunity Cost - What you must give up in order to get something or what you must give up by not choosing your best alternative Principle 3 - "How much" is a decision at the margin Principle 4 - People usually respond to incentives, exploiting opportunities to make themselves better of

When economists assume that you can rank any two options according to the utility they provide, they are saying that your preferences arecomplete The slope of the budget line is given by:-Px/Py Consumers allocate their scarce resources bymaximizing their total utility subject to one or more budget constraints The marginal rate of substitution tells usthe amount of one good we would be willing to give up in exchange for one additional unit of another good What causes the demand for a no...

Econ 2106 UGA McGahee Review of Test 1-3

ECON 2106 EXAM 1

Econ 2106 UGA McGahee Review of Test 1-3

Econ 2106 UGA McGahee Review of Test 1-3

Classnotes and summaries of each chapter with examples and Graphs