Unit 2 Matching Quiz Sheet

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

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

View Full Document Right Arrow Icon
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.
Image of page 1

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

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

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern