Econ Self Notes

Econ Self Notes - something else. Consumer surplus:...

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Econ Self Notes Chapter 1 If production possibilities curve has a smaller slope, the opportunity cost is lower. o PPC smaller slope lower opportunity cost o Then there is a comparative advantage Smaller opportunity cost comparative advantage To have an extra unit, you must give up how ever many units the slope of the PPC is. Comparative Advantage o The less amount of units you have to give up to have more units of
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Unformatted text preview: something else. Consumer surplus: difference between what you are willing to pay and the price of the commodity in a competitive market Non-pecuniary o Cannot raise rents; illegal Chapter 2 Law of demand: price decreases, demand increases “Ceteris Paribus” : “all else constant”...
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This note was uploaded on 03/19/2009 for the course CLASS 40 taught by Professor Athanassakis during the Winter '08 term at UCSB.

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