Midterm 2 Review

Midterm 2 Review - Midterm 2 Review Ch. 6 Elasticity of...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Midterm 2 Review Ch. 6 Elasticity of Demand Price elasticity of demand Elasticity o Responsiveness to price changes (sales) o P. 106 o Equations 3 kinds of demand curves P. 109, 112 o Elastic Percentage is greater than 1 o Unitary Perishable goods o Inelastic Agriculture Why it is having a problem o Quantity vs. Price graphs No elasticity of supply Ch. 7 Consumer Behavior Utility o Wants and satisfaction Marginal utility and demand o P. 128 o P. 131 Income and substitution effects Diamond and water o P. 132 o Need water more than diamonds, but why do diamonds cost so much more? Ch. 8 Cost of Production Major costs o Implicit Opportunity costs o Explicit Actual cash expenditure to buy inputs (materials) and produce outputs (goods) o Fixed Labor
Background image of page 1

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

View Full DocumentRight Arrow Icon
Utility Insurance Not effected by production process and does not fund that process either Only in the short run (within a year) o Variable Everything in terms of long run
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/25/2008 for the course ECON 203 taught by Professor Al-sabea during the Fall '05 term at USC.

Page1 / 4

Midterm 2 Review - Midterm 2 Review Ch. 6 Elasticity of...

This preview shows document pages 1 - 3. Sign up to view the full document.

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