Micro3SG

Micro3SG - ECO 2023 Principles of Microeconomics Chapter 3...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECO 2023 Principles of Microeconomics Chapter 3 Supply, Demand, and the Market Process Key Terms: Law of demand Substitutes Consumer surplus Complements Opportunity cost of production Profit Law of supply Producer surplus Equilibrium Economic efficiency Invisible hand principle 6 Goals: #1 - Describe consumer behavior. The law of demand and the availability of substitutes dictate consumer behavior. Consumer surplus is the benefit to consumers from paying a price below their willingness to pay. Demand elasticity can be seen with a graphical representation which shows a steep inelastic curve and a flat elastic curve. #2 - Separate the difference between a change in demand and a change in quantity demanded. A change in demand is illustrated by a shift of the entire curve while a change in quantity demanded is a movement along a stationary curve. List the six factors that can change demand. #3 -
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Micro3SG - ECO 2023 Principles of Microeconomics Chapter 3...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online