QUIZ 1 REVIEW - Affects of Taxes on supply and demand...

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QUIZ 1 REVIEW (told responsible for Chapters 1-5) Types of Problems: (most likely no multiple choice) I.D. – Given a graph or table, find a certain value optimal/equilibrium price and quantity who has comparative advantage ALSO, If/Then Questions (tax, health benefits found(change in Demand)) SHORT ANSWER – Definition Describe how supply/demand will react to some other force (price, Change to a compliment in consumption) Simple equations (Q s and Q d given, find P E and Q E ) Effects of a price floor (Min Wage) Draw a graph of Supply/demand, label the parts Give examples and justify answer(compliments of production, inferior goods)
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Unformatted text preview: Affects of Taxes on supply and demand Important Terms: Demand Supply Comparative Advantage Absolute Advantage Changes in AMT Dem/Sup vs Changes in Dem/Sup Consumer Surplus Producer Surplus Economic Surplus Command Economy Market Economy Production Possibilities Positive Economics Normative Economics Opportunity Cost Consumer Sovereignty 4 types of resources Inferior Goods Equilibrium Price Ceiling/Floor Dead Weight Loss Externalities Social cost Private cost Public Goods Rivalry Excludability Free riding Total Revenue Substitutes Compliments of Consumption Compliments of Production...
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This note was uploaded on 02/26/2008 for the course ECO 001 taught by Professor Gunter during the Fall '06 term at Lehigh University .

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