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Unformatted text preview: inefficient because the combination of goods and services produced is not what people want -Steeper slope implies a higher opportunity cost -Demand curves are derived while holding constant income, tastes, and the price of other goods -The quantity demanded of pepsi has decrease, the best explanation for this is the price of pepsi has increased -Change in quantity is ALWAYS a movement along the DEMAND curve, price changes, the SUPPLY curve shifts -Ep = Qd/P-A demand curve that has a price elasticity will be zero -- Qd = Qs at equilibrium...
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This document was uploaded on 09/14/2011.
- Spring '10