Economics Chapter 3 Review Problems

Economics Chapter 3 - Economics Chapter 3 Review Problems 1 A demand curve via a vertical perspective means that you tell how much of a good or

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Economics Chapter 3 Review Problems 1. A demand curve via a vertical perspective means that you tell how much of a good or service the consumer wishes to buy at the separate prices. A horizontal perspective for demand starts with the price of which the person would like to buy a specific quantity. A buyer’s reservation cost is the highest dollar amount a person is willing to pay for a good. A seller’s reservation cost is the smallest amount a seller wishes to seller another unit of a good for. Market equilibrium is when both the buyers and sellers are satisfied. Excess supply is when the amount supplied exceeds the amount demanded and when the price of the good exceeds the equilibrium price. Excess demand is when there is not enough supply for the amount demanded, and the price of that good lies below the equilibrium price. The change in demand is when the whole demand curve shifts on the graph but the change in quantity demanded is when you move along the curve. The change is supply is a shift of the whole supply curve but the change in
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This note was uploaded on 09/20/2011 for the course ECON 201 taught by Professor Shoonlai during the Spring '09 term at Miami University.

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Economics Chapter 3 - Economics Chapter 3 Review Problems 1 A demand curve via a vertical perspective means that you tell how much of a good or

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