Unit 2 Matching Quiz Sheet

Unit 2 Matching Quiz Sheet - Yuki Hirai CLC/Economics Price...

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Yuki Hirai CLC/Economics Price Elasticity of Demand- The ratio of the percentage change in the quantity demanded of a product to the percentage change in its price Public Goods- A good or service with two properties: (1) users collectively consume benefits and (2) there is no way to bar people who do not pay (free riders) form consuming the good or service Price Ceiling- A legally established maximum price a seller can charge Total Fixed Cost- Costs that do not vary as output varies and that must be paid even if output is zero. There are payments that the firm must making in the short run, regardless of the level of output President Nixon- Froze the price of gas, minimum wage, etc. for 90 days and caused the waiting time for consumer goods to skyrocket, but help “protect” the USA from complete depression destruction. Negative Externality- External cost, many are related to the environment Wealth of Nations- Written by Adam Smith, describes how the consumer should watch out for businesses trying to work together to drive prices of goods up so they can make a profit Movies- Inelastic in the short run, but very elastic in the long run, since the longer we wait after the movie comes out the movie can be watched on Netflix and other means. So the movie theater needs to lower prices if they want people to come to the theaters.
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